Nigeria’s foreign exchange reserves fell by $832.62 million in just two weeks (between January 6 and January 21), indicating a significant decrease in the early days of 2025.
The Central Bank of Nigeria (CBN) disclosed this information on its website.
There are worries regarding the nation’s external liquidity position because as this recent sharp drop marks one of the biggest declines in reserves in a long time.
According to CBN data, Nigeria’s gross external reserves were $40.92 billion as of January 6, 2025. However, in only two weeks, the amount had dropped to $40.09 billion, indicating a 2.03% drop by January 21.
This steep fall in foreign reserves underscores the strain on Nigeria’s reserves in the face of persistent currency market problems and macroeconomic uncertainty. The fall follows nearly five months of relative stability and growth in foreign exchange reserves.
The reserves, which are currently at a two-month low, is likely to fall below N40 billion by the end of January if the current trajectory of decrease continues.
More Updates On Foreign Exchange Reserve
The data also shows that the reserves declined consistently during the review period. On January 13, reserves slipped below $40.6 billion for the first time in the month, reaching $40.56 billion. The trend continued as reserves fell to $40.42 billion on January 15 and reached $40.09 billion on January 21.
- Reserve decreased by $167.1 million between January 10 and January 13.
- Reserves further dropped by $502.5 million from January 6 to January 13.
- Total decrease in reserves accumulated to $832.62 million between January 6 and January 21.
Further Information
The FX decline comes at a time when the Nigerian government grappling with serious economic and monetary issues. The decrease in reserves may also limit the CBN’s ability to intervene in the foreign exchange market to stabilize the naira, which had already suffered rising pressure before December 2024.
According to data seen by 9am News Nigeria, Nigeria’s foreign exchange (FX) reserves have plummeted by approximately $2.16 billion in 29 days, despite the Central Bank of Nigeria’s (CBN) strong attempts to stabilize the naira.
According to CBN data, one of the most significant dip in foreign reserves in recent times was in April 2024. FX reserves fell to $32.29 billion from $34.45 billion between April 15 to March 18, 2024.
Yemi Cardoso, Governor of the Central Bank of Nigeria, attributed the prior decrease in April 2024 to debt repayments and other routine financial requirements, rather than measures to defend the naira.
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