According to information acquired from the Central Bank of Nigeria (CBN), Nigeria’s external reserves declined by $841.75 million between July and September.
The CBN disclosed in its report on the movement of external reserves that reserves declined from $34.07 billion on July 7, 2023 to $33.23 billion on October 5, 2023.
External reserves declined by $2.85 billion in the first half of 2023, owing to external debt financing and other issues, according to CBN estimates. The CBN previously stated that the reserves that began on January 3, 2023, at $37.07 billion, had fallen to $34.22 billion by the end of June 26, 2023.
According to personal statements released by the CBN by Monetary Policy Committee members, as of July, accretion to external reserves remained weak while foreign exchange demand pressures persisted.
Former acting Governor, CBN, Folashodun Shonubi, had stated that, “Eventual stability of the foreign exchange market over the medium-term, will further help to achieve price stability.
“Besides, the recent removal of subsidy could have a favourable effect on price stability as increased crude oil receipts by the government will bolster reserves, engender exchange rate stability, and help to moderate inflation.”
