Index to Nigerian Newspapers

JP Morgan estimates Nigeria's net foreign reserve to be around $3.7 billion, significantly below the $33.8 billion reported on the Central Bank of Nigeria (CBN) website. This figure is much lower than the $14 billion net figure at the end of 2021. The lower-than-reported forex reserve is due to larger currency swaps and borrowings against the forex reserve. The bank added $5 billion in International Monetary Fund Special Drawing Rights to external reserves, resulting in total gross forex reserves of $37.8 billion. The bank believes the CBN can withstand the pressure due to profit from swap arrangements between the CBN and commercial banks, allowing rates to continue to rise.

JP Morgan estimates Nigeria's net foreign reserve to be around $3.7 billion, significantly below the $33.8 billion reported on the Central Bank of Nigeria (CBN) website. This figure is much lower than the $14 billion net figure at the end of 2021. The lower-than-reported forex reserve is due to larger currency swaps and borrowings against the forex reserve. The bank added $5 billion in International Monetary Fund Special Drawing Rights to external reserves, resulting in total gross forex reserves of $37.8 billion. The bank believes the CBN can withstand the pressure due to profit from swap arrangements between the CBN and commercial banks, allowing rates to continue to rise.