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Nigeria’s external reserves down by $1.19bn in 25 days

Source: TodayFeedsMedia

Foreign exchange
Nigeria's external reserves have taken a significant hit, decreasing by $1.19 billion in just 25 days. According to data from the Central Bank of Nigeria (CBN), the gross external reserves reached a high of $40.920 billion on January 6, 2025, but started moderating steeply, dropping to $39.723 billion by January 31 



This decline is attributed to two main factors: international debt servicing obligations and foreign exchange (FX) interventions by the CBN. An informed source noted that while supply is meeting demand, there are other areas where the reserves are being utilized, such as repaying external loans, paying coupons on Eurobonds, and spending in USD based on budget. 

The Financial Derivatives Company (FDC) predicts that Nigeria's gross external reserves will drop by 11.47% in 2025 to $36.21 billion, and then increase to $37.65 billion in 2026. Additionally, the FDC analysts expect the Dollar/Naira exchange rate to average at N1,586 in 2025 and N1,575 in 2026. 


https://businessday.ng/markets/article/nigerias-external-reserves-down-by-1-19bn-in-25-days/?amp

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