Once again, events over H1 2020 revealed the apex bank’s vulnerability to external shocks. With
FPI inflows and oil receipts jointly accounting for c.50% of CBN’s FX inflows, the twin shock of
covid-19 pandemic and lower oil price posed a threat to the FX reserves. While we expected the
CBN to give in to mounting pressures on the reserve, we didn’t envisage that happening this year.
