Nigeria’s FX Reserves

Nigeria’s FX Reserves Fall to $55.09bn, Ending Three-Month Growth Streak

Nigeria’s fx reserves experienced their first decline in three months, dropping to $55.09 billion on October 14.

This figure represents a 0.01 percent reduction compared to the $55.1 billion recorded on October 13.

The last prior contraction occurred on July 28, when reserves stood at $51.94 billion.

An analysis of Central Bank of Nigeria data reveals that reserves fluctuated between increases and decreases from July through early August.

The reserves registered at $52.03 billion on July 21 before rising slightly to $52.04 billion on July 22. Subsequently, the total dipped to $52.03 billion on July 23 and declined further to $52.02 billion by July 24.

The reserves declined further to $51.96 billion on July 27 and $51.94 billion on July 28, before dropping to $51.92 billion on July 30, where they remained stable through the end of the month.

However, a rebound began in August, with totals reaching $51.94 billion on August 3, $51.95 billion on August 4, and $52 billion on August 5, before climbing to $52.03 billion on August 6.

This upward momentum persisted over the following months, pushing reserves to $52.14 billion on August 10 and eventually peaking at $55.1 billion on October 13.

The modest dip on October 14 brought a halt to this nearly three-month continuous upward trajectory.

Fitch Ratings projected that Nigeria’s external reserves will decline to $47 billion by the close of 2026, despite ongoing foreign exchange reforms and recent macroeconomic policy advancements.

Backstory…

The reserve build-up accelerated in September and early October, with the CBN governor, Olayemi Cardoso, saying on September 18 that reserves had reached $55.25 billion, enough to cover 11.3 months of imports of goods and services.

The CBN’s reported figures later showed a rise to about $55.1 billion by October 13, before the balance fell to $55.09 billion on October 14, ending the growth streak.

The sharp fluctuations in reported figures also warrant caution: the CBN corrected a website error that had briefly overstated reserves at $58.81 billion.

Read Also: Nigeria’s FX Reserves Drop by $114 Million After Hitting $52.04 Billion Peak

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Favour Jeremiah
Favour Jeremiah

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