Nigeria’s foreign exchange (FX) reserve dropped by $1.02 billion within 18 days.
According to data from the Central Bank of Nigeria (CBN), the FX reserve stood at $33.43 billion on April 4 down from $34.45 billion on March 18.
The record showed that the country’s foreign reserves declined from $34.45 billion on March 18, to $34.39 billion on March 19, $34.32 billion on March 20, and $34.26 billion on March 21.
Further analysis revealed that on March 26, the reserves fell further to $33.95 billion, with the downward trajectory continuing to $33.89 billion on March 27, $33.83 billion on March 28, and $33.57 billion on April 2.
Between April 3 ($33.51 billion) and April 4 ($33.43 billion), the nation’s reserve dropped by $8 million.
Within 18 days, the reserves declined by $1.02 billion amid efforts by the CBN to increase liquidity in the FX market and stabilise the naira.
Since the beginning of the year, the apex bank under the leadership of Olayemi Cardoso, has introduced several policies to improve the FX market and strengthen the naira.
Part of the interventions includes the occasional sale of dollars to the bureau de change (BDC) operators to ensure sufficient liquidity in the market.
On February 27, the apex bank resumed the sale of FX to BDCs.
In the first tranche, each “eligible” BDC was allocated $20,000 at the rate of “N1,301/$, while the second tranche of $10,000 was sold to the BDCs at the rate of N1,251/$.
Following the interventions, the apex bank said the economy recorded over $1.5 billion inflow in March.
