Nigeria’s foreign exchange reserves fell by $342.97 million in just nine days, reducing the total to $36.53 billion as of August 15, 2024.
The decline follows the Central Bank of Nigeria’s sale of $876.26 million to meet import demands and other user needs.
This drop occurs ahead of the government’s plan to issue a $500 million domestic dollar bond aimed at stabilizing the forex situation and bolstering reserves.
Finance Minister Wale Edun emphasized that the bond issuance would provide necessary foreign exchange liquidity, manage inflation, and attract investment.
The bond, a first of its kind, will be open to local and foreign investors with a minimum subscription of $10,000.
The ongoing decline highlights challenges in maintaining reserve levels amidst economic pressures, including the need to meet import demands and manage naira stability.
Despite the CBN’s earlier claim of higher reserves, checks revealed that actual reserves were $1.12 billion lower than stated.
Source: PUNCH