Nigeria’s foreign exchange reserves saw a decline of $505.68 million, or 1.37%, in August 2024, according to the latest data from the Central Bank of Nigeria.
The reserves dropped from $36.827 billion on August 1 to $36.321 billion by August 29, marking the steepest monthly decline since April 2024.
This decline coincides with the Nigerian government’s issuance of a $500 million domestic dollar bond, aimed at boosting the country’s external reserves
The data indicates a consistent decline throughout the month, with the most significant dip occurring in the final week.
Despite this effort, CBN data shows a consistent downward trend throughout August, with the most significant decrease occurring in the final week
By August 8, reserves had slightly increased to $36.848 billion but then dropped to $36.529 billion by mid-month.
This drop follows a four-month period of growth, where reserves had increased by about $4 billion.
The August decline erased approximately 12.64% of those gains, underscoring the challenges Nigeria’s financial authorities face in maintaining reserve levels.
Adding to the pressures, in the first week of August, the CBN sold $876.26 million at N1,495/$1 to 26 qualified banks during its latest Retail Dutch Auction.
These challenges are compounded by the need to meet import demands, service debt obligations, and manage liquidity to stabilize the naira.
In the first week of August, the CBN sold $876.26 million at N1,495/$1 to 26 qualified banks through its latest Retail Dutch Auction.
Despite receiving $1.18 billion in bids from 32 dealer banks, six banks were disqualified due to missed deadlines and submission errors.
The ongoing decline in reserves highlights the economic pressures on Nigeria as it seeks to balance its financial obligations and maintain currency stability.
