Nigeria’s foreign exchange reserves have fallen by $1.8bn in 10 weeks, according to data from the Central Bank of Nigeria.
As of May 29, 2024, the country’s FX reserves stood at $32.69bn, down from $34.44bn as of March 18, PUNCH reports.
This decline signifies a drop from the $36.1bn recorded in May 2023.
The reserves have been declining steadily over the past few months, with a total decrease of $3.4bn since February 2024.
Experts believe that the decline in FX reserves is attributed to a combination of factors, including debt repayment, a significant decline in oil exports, a decrease in foreign investment, and a rise in imports.
Debt repayment recorded by the apex bank as of January 2024 was $560m, it reduced to $283.29m in February and then $276.16m in March 2024. Experts claim that the apex bank must have been servicing the foreign debts from the external reserves.
In the month of May, the naira ended the month weaker, despite a surge in dollar supply amounting to $4.60 billion in the official foreign exchange market.
