Nigeria’s foreign exchange reserves experienced a decline of $435.40 million within the span of a week, according to data from the Central Bank of Nigeria.
The reserves decreased from $40.92 billion on January 6 to $40.48 billion on January 14.
This drop highlights a significant change in the country’s foreign reserve holdings over a short period.
The data reveals a consistent decline in Nigeria’s foreign exchange reserves over the course of the week.
Starting at $40.92 billion on January 6, the reserves gradually dropped to $40.91 billion on January 7, $40.85 billion on January 8, and $40.80 billion on January 9.
The downward trend continued with reserves falling to $40.75 billion on January 10, further dropping to $40.56 billion on January 13, and ultimately reaching $40.48 billion on January 14.
This steady decrease represents a $435.40 million reduction in the nation’s foreign reserves over this period.
A the research lead at Cowry Asset Management Limited, Charles Abuede,
suggested that the gradual depletion of Nigeria’s foreign exchange (FX) reserves could be attributed to a halt in FX inflows into the country.
This lack of sufficient inflows may have put pressure on the reserves, contributing to the consistent decline observed over the week.
He said “This could also be an effort of the CBN to defend the naira at the market in a bid to shore up its value.
“The Nigerian government’s revenues continue to stay weak over the years while expenditure continues its rise, thus, keeping us in a negative position in our fiscal balance.
“To bring about a rise in the reserves levels, Nigeria needs to improve and sustain crude oil production and sales for more earnings.
“Incentives to spur diaspora remittance inflows, coherent FX policy reforms aimed at creating balance in the FX market and to drive FDI inflows.”
On December 18, 2024, the CBN announced that it had granted eligible bureau de change operators temporary access to the Nigerian Autonomous Foreign Exchange Market
This access allowed them to purchase $25,000 weekly from December 19 to January 30.
