Nigeria’s FX Drops By $435m In One Week

Nigeria’s foreign exchange (FX) reserves recorded a sharp decline of $435.40 million in just seven days C8087 – 501.177730 , OnlinenevadaShops – Diadora Magic Basket Low Icona 'White Malibu Blue' – diadora n9000 h mip x leo colacicco, further highlighting the financial strain on the nation’s economy.

According to data obtained from the Central Bank of Nigeria (CBN), the reserves dropped from $40.92 billion on January 6 to $40.48 billion by January 14, 2025.

The figures showed a consistent downward trend throughout the week, with the reserve standing at $40.91 billion on January 7, $40.85 billion on January 8, and $40.80 billion on January 9. By January 13, it had fallen to $40.56 billion, eventually hitting $40.48 billion the following day.

Economic analysts have attributed the decline to multiple factors, including reduced FX inflows into the country and the CBN’s efforts to defend the naira in a volatile foreign exchange market.

Charles Abuede, research lead at Cowry Asset Management Limited, noted that the depletion reflects the challenges of maintaining liquidity in the FX market amid weak government revenues and rising expenditures.

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Abuede further emphasized the need for Nigeria to boost crude oil production and sales to enhance foreign earnings.

He also advocated for policies to encourage diaspora remittance inflows and attract foreign direct investments (FDI) through coherent FX reforms aimed at balancing the market.

In an effort to stabilize the naira, the CBN recently granted eligible Bureau de Change (BDC) operators temporary elastico nike black green free run access air jordan 3 black cement 2024 to the Nigerian Autonomous Foreign Exchange Market (NAFEM), allowing them to purchase $25,000 weekly from December 19, 2024, to January 30, 2025.

While these measures aim to address market demand, experts suggest air jordan 4 military blue 2024 that a more sustainable approach is required to reverse the declining trend in Nigeria’s FX reserves.