News

April 18, 2024

Nigeria’s FX reserves drop to $32bn, lowest in six years

CBN act

CBN

Nigeria’s foreign reserves fell to $32.29 billion on April 15, the lowest in over six years.

According to the latest data from the Central Bank of Nigeria, CBN, the reserves moved from $34.44 billion, the highest level in 2024, to $32.2 billion on April 15.

The foreign reserves dropped by $2.15 billion or 6.26 per cent.

This brings to an end, a period of steady increase between February 5 and March 18, when the FX reserves rose by $1.28 billion.

CBN had attributed the growth to increased remittance payments from Nigerians abroad and heightened interest from foreign investors in local assets, including government debt securities.

The last time the foreign reserves stood at this level ($32.29 billion) was on September 9, 2017, when the CBN reported N32.28 billion.

READ ALSO: CBN not using foreign reserves to defend Naira — Cardoso

The decline in foreign reserves comes amid CBN’s intervention in the parallel market in a bid to crash the FX rate.

On February 27, the apex bank allocated $20,000 to each bureau de change (BDC) operator at the rate of N1,301/$, while the second tranche of $10,000 was sold to the BDCs at the rate of N1,251/$.

On April 8, the apex bank began the third tranche of sales to BDCs at N1,101/$.

Amid this intervention, the naira appreciated against the dollar in the parallel market, moving from N1,900 per dollar on February 21, to N1,100/$ on April 13.