In December 2023, Africa’s largest economy, Nigeria, witnessed a decline in its external reserves, dropping by approximately $77.23 million or 0.23%. According to data from the Central Bank of Nigeria, by December 28, the external reserves totaled $32,892,386,111. The liquid portion amounted to $32,164,718,095, while $727,668,016 was blocked and not available for use.
At the start of December 2023, the external reserves were nearly $33 billion, with $32,212,850,183 available for use and $756,761,250 blocked. In comparison, as of November 30, 2023, the foreign reserves stood at $33,004,054,737. The decline reflects the ongoing foreign exchange instability in the country.
Foreign exchange reserves, which include cash and other assets like gold held by a central bank, play a crucial role in balancing a country’s payments, influencing its currency exchange rate, and maintaining confidence in financial markets. Despite efforts by Nigeria’s monetary policy managers, the quest to grow and sustain foreign reserves over time has proven challenging.
Nigeria’s foreign reserves reached approximately $47.37 billion on April 5, 2018, but have experienced a sustained decline over the past five years.
Source: Punch Newspaper