Emmanuel OchayiIn the ongoing battle to stabilize Nigeria’s foreign reserves, figures from the Central Bank of Nigeria revealed a decline of about $77.23 million, marking a 0.23% decrease in December 2023.
“The fluctuating foreign exchange environment continues to impact our reserves,” stated an official from the Central Bank.
“The nation’s foreign reserves now stand at $32,892,386,111, down from the near $33 billion at the start of December,” disclosed the latest report. This trajectory follows a persistent downward trend over the past five years, despite prior aims by former CBN Governor, Godwin Emefiele, to reach $50 billion by the end of 2018, an aspiration that remains unfulfilled.
Experts have highlighted the significance of Nigeria’s weakened net international reserve position, highlighting the country’s external vulnerabilities.
Fitch Ratings said: “Exchange-rate liberalization and improvements in the overall monetary policy framework could ease foreign-currency supply constraints.”
Efforts by the government and the Central Bank of Nigeria to bolster foreign reserves have been ongoing, including recent actions to settle outstanding matured FX forwards, amounting to an estimated $6.7 billion.
However, challenges persist in stabilizing and growing the nation’s foreign reserves, necessitating further strategic measures to fortify Nigeria’s fiscal standing amidst FX volatility.
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