The Central Bank of Nigeria’s efforts to support the Naira, coupled with declining crude oil revenue, caused Nigeria’s foreign exchange reserves to decrease to $32.29 billion.
Data available on CBN’s website indicates a $2.16 billion reduction in Nigeria’s FX reserves over the past 29 days.
As of April 15, the country’s FX reserves were at $32.29 billion, down from $34.45 billion on March 18, marking the lowest level since September 25, 2017, when reserves were at $32.28 billion.
In recent months, the Naira has seen a trend of appreciation against the Dollar, thanks to the CBN’s consistent efforts to protect the currency.
CBN intervened by selling USD to Bureau De Change operators at a predetermined rate, bridging the gap between official and parallel market rates, leading to a sustained strengthening of the Naira in the FX market.
However, there was a slight depreciation of the Naira against the Dollar for the first time since March.
This drop in reserves coincides with a decrease in crude oil revenue in March, with data from the Organization of Petroleum Exporting Countries showing a decline in Nigeria’s crude oil production to 1.23 million barrels per day in March from 1.32 bpd in February.