Nigeria’s FX Reserves Decline by Over $2bn in One Month, Hits Lowest in 6 Years

• Nigeria’s FX reserves plummet by $2.16 billion in 29 days, reaching $32.29 billion on April 15 amid CBN interventions
• Reserve decline persists from $34.45 billion on March 18 to $32.29 billion on April 15, reflecting CBN’s efforts to stabilize naira

In 29 days, Nigeria’s foreign exchange (FX) reserves have taken a significant hit, plunging by approximately $2.16 billion. This drop comes amidst the Central Bank of Nigeria’s (CBN) vigorous efforts to stabilize the naira.

Data from the CBN indicate that FX reserves stand at $32.29 billion as of April 15, 2024, a notable decrease from the $34.45 billion recorded on March 18, 2024.

The reserves’ downward trajectory has been consistent, with a steep decline from the high of $34.45 billion on March 18, 2024, to the current low of $32.29 billion by April 15, 2024.

At the beginning of April, the reserves were at $33.57 billion, steadily dwindling to $33.43 billion by April 4. The depletion continued, reaching $33.04 billion on April 8, $32.61 billion on April 12, and ultimately hitting $32.29 billion on April 15.

This rapid decline in reserves is attributed to the CBN’s active interventions in the FX market to bolster the naira, resulting in a previous loss of about $1.02 billion in just 18 days.

The current level of foreign exchange reserves is the lowest since September 25, 2017, when they stood at $32.28 billion.

This diminishing trend underscores the significant financial challenges faced by Nigeria as the apex bank endeavours to uphold the stability of the naira amidst a challenging economy.