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.
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