Index to Nigerian Newspapers

Nigeria’s FX Reserves Plunge by $832m in Two Weeks

Nigeria's foreign exchange reserves experienced a sharp drop of over eight hundred and thirty-two million dollars during a two-week period in January 2025, falling from nearly forty-one billion dollars to just over forty billion dollars. Official figures from the Central Bank of Nigeria indicate this is the steepest decline the country has seen since April 2024, bringing external liquidity to a two-month low and raising concerns that reserves could drop below forty billion dollars if the trend continues. Analysts attribute the steady multi-day decline primarily to mounting financial pressures, including debt servicing commitments, high demand for foreign currency to pay for imports, and potential capital flight. The rapid depletion of reserves limits the central bank's capacity to step into the foreign currency market, threatening to renew downward pressure on the naira, which had temporarily stabilized at around fifteen hundred and fifty naira per United States dollar.

TUNJI, Sami | Foreign exchange reserves—Nigeria | Punch Newspaper | Friday, January 24, 2025