In a concerning turn of events, Nigeria’s foreign exchange (FX) reserves have seen a staggering decline of $1.02 billion within a mere 18-day period.
Data released by the Central Bank of Nigeria (CBN) reveals a sharp drop from $34.45 billion on March 18 to $33.43 billion on April 4, painting a worrying picture of the nation’s economic stability.
The downward trajectory of the reserves is evident, with figures showing a steady decrease from $34.45 billion on March 18 to $33.57 billion on April 2. Notably, between April 3 and April 4 alone, the reserves witnessed a $8 million decline, further exacerbating concerns over the nation’s economic health.
The root cause of this significant depletion lies in the persistent weekly and monthly interventions by the CBN in the foreign exchange market. These interventions, aimed at stabilising the value of the local currency amidst increasing forex volatility, have put immense pressure on the country’s reserves.
Mr. Olayemi Cardoso, Governor of the apex bank, has spearheaded various policies since the year’s commencement to bolster the FX market and fortify the naira. Notable interventions include the periodic sale of dollars to bureau de change (BDC) operators to ensure liquidity.
