Nigeria’s external reserves shed $2.16 billion in the past month, falling to a seven-year low of $32.29 billion on April 15, 2024, from $34.45 billion on March 18, 2024, according to CBN data.
A recent Bloomberg report suggested that Nigeria is burning through its foreign exchange reserves at a rate not seen in four years, raising concerns that the central bank is depleting its dollar holdings to support the naira after pledging it would allow the currency to float more freely.
Liquid reserves declined 5.6% since March 18, when the naira started its rebound from record-low levels against the dollar to $31.7 billion as of April 12, according to Bloomberg’s calculations based on the latest available data from the CBN, that’s the biggest decline in a similar period since April 2020, according to data compiled by Bloomberg.
How naira has performed since January
At the beginning of the year, the naira went down to about N1,900 to a dollar. However, the naira has been gaining strength lately and has gone up to about N1,100 to a dollar.
