When this currency kept gaining against the dollar, I was very sure that is was not normal. Sooo, we are fully back to Emefiele days, at this rate they should just free Emefs I beg since they are now copying his template

Nigeria’s FX reserve dips by $1.02 billion in 18 days on CBN’s naira defence


by Sami Tunji

Nigeria’s foreign exchange (FX) reserve has experienced a sharp decline of about $1.02 billion within 18 days, as the Central Bank of Nigeria (CBN) continues its aggressive defence of the naira.

As of April 4, 2024, the FX reserves stood at $33.43 billion, down from $34.45 billion on March 18, 2024, according to the latest data from the CBN.

Nigeria’s foreign exchange reserve plummeted to its lowest level since February 20, 2024, when it was $33.42 billion. This marks a decisive end to a period of steady accrual, during which the reserve witnessed a 43-day surge, accruing $1.28 billion between February 5 and March 18, 2024. The CBN earlier attributed the rise to increased remittance payments from Nigerians abroad and heightened interest from foreign investors in local assets, including government debt securities. The apex bank also noted that the increase was due to reforms in the foreign exchange market and an increase in oil production amongst others.

The downward trend reflects a significant drawdown in the reserves, which have been depleting since March 18, when they peaked at $34.45 billion. The reserves dropped to $34.39 billion on March 19 and continued to fall steadily, hitting $33.57 billion by April 2, and further sliding to $33.43 billion by April 4. This marks a decline of $1.02 billion within 18 days, indicating the pressure on the reserves amid ongoing efforts to stabilize the local currency.

CBN’s FX Interventions

The CBN has been actively intervening in the foreign exchange market to shore up the naira, which has been under pressure from various economic factors. This intervention often involves the sale of dollars to ensure sufficient liquidity in the market, an action that has likely led to a decrease in FX reserves.

Within the 18-day period under review, the CBN announced the complete clearance of the valid foreign exchange backlog and the sale of $10,000 foreign exchange to each Bureau De Change operator (BDC) in Nigeria at a rate of N1,251/$1.

What You Should Know

Nairametrics
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Nigeria’s FX reserve dips by $1.02 billion in 18 days on CBN’s naira defence
Sami Tunji by Sami Tunji 7 hours ago
CBN, OMO Bill

Nigeria’s foreign exchange (FX) reserve has experienced a sharp decline of about $1.02 billion within 18 days, as the Central Bank of Nigeria (CBN) continues its aggressive defence of the naira.

As of April 4, 2024, the FX reserves stood at $33.43 billion, down from $34.45 billion on March 18, 2024, according to the latest data from the CBN.

Nigeria’s foreign exchange reserve plummeted to its lowest level since February 20, 2024, when it was $33.42 billion. This marks a decisive end to a period of steady accrual, during which the reserve witnessed a 43-day surge, accruing $1.28 billion between February 5 and March 18, 2024. The CBN earlier attributed the rise to increased remittance payments from Nigerians abroad and heightened interest from foreign investors in local assets, including government debt securities. The apex bank also noted that the increase was due to reforms in the foreign exchange market and an increase in oil production amongst others.

The downward trend reflects a significant drawdown in the reserves, which have been depleting since March 18, when they peaked at $34.45 billion. The reserves dropped to $34.39 billion on March 19 and continued to fall steadily, hitting $33.57 billion by April 2, and further sliding to $33.43 billion by April 4. This marks a decline of $1.02 billion within 18 days, indicating the pressure on the reserves amid ongoing efforts to stabilize the local currency.

CBN’s FX Interventions
The CBN has been actively intervening in the foreign exchange market to shore up the naira, which has been under pressure from various economic factors. This intervention often involves the sale of dollars to ensure sufficient liquidity in the market, an action that has likely led to a decrease in FX reserves.


Within the 18-day period under review, the CBN announced the complete clearance of the valid foreign exchange backlog and the sale of $10,000 foreign exchange to each Bureau De Change operator (BDC) in Nigeria at a rate of N1,251/$1.

What You Should Know
The depletion of FX reserves is a cause for concern as it reflects the state of the country’s balance of payments and its ability to meet international obligations. A significant decline in the reserves can affect investor confidence and may lead to a credit rating downgrade, which can further impact the nation’s borrowing costs.

Nigeria faces multiple economic challenges, including theft and losses in the oil and gas sector, which have traditionally been a significant source of FX for the country. The decrease in reserves may also limit the CBN’s ability to intervene in the currency market, potentially leading to further depreciation of the naira.
The International Monetary Fund (IMF) recently projected that Nigeria’s foreign reserve is expected to see a significant reduction, falling to $24 billion in 2024. The IMF anticipates a challenging period through 2024–25 for Nigeria’s financial account, exacerbated by an absence of new Eurobond issuances, significant repayments of existing funds and Eurobonds totalling $3.5 billion, and continued portfolio outflows. However, it projected a hopeful recovery to $38 billion by 2028 as portfolio inflows are forecasted to increase.

Policymakers may need to balance immediate currency stabilisation efforts with long-term economic strategies to ensure the health and stability of Nigeria’s financial position on the global stage.

SOURCE

https://nairametrics.com/2024/04/07/nigerias-fx-reserve-dips-by-1-02-billion-in-18-days-on-cbns-naira-defence/

Who is the fool now

So CBN should have sat down and let the naira fall to 2000 so u can make money ko?? God catch you!

They're paying fuel subsidy and defending the naira all but at a higher price.

This is the economy of people with patch patch CVs

MyMouth:
So CBN should have sat down and let the naira fall to 2000 so u can make money ko?? God catch you!

I am not even angry that they are defending the currency. If U come out and say you are now playing défense , I no fit vex because I like defending too like Mourinho

But it was been said as if the naira was gaining due to some miraculous monetary policy

MyMouth:
So CBN should have sat down and let the naira fall to 2000 so u can make money ko?? God catch you!

Why not? After defending buhari's cluelessness for 8 wasted years...who is Tinupoo that you can not defend.


Is this how you plan to live your life

This people are pretending and thinks we are fools as if it was. not Tinubu that cause the free fall of the Naira with his Naira floating policy.

Good for them.

blancsn1:
Objngo wailer wail on. When Obi become president let j not defend the naira after falling tonrecord lowm

After defending the free floating of naira by Tinupoo 😂

Are you not ashamed of yourself??

Why are you defending the defending of naira after supporting the floating of same naira??

Are you people normal at all?

The amount used to subsidize naira for just 6 weeks (over N3trillion), they can use to subsidize electricity for one full year.

The fear of BAND A

We already knew. That's why naira is gaining but the gain is not reflecting on the realities on ground.

I curse the day APC was born!

blancsn1:
Objngo wailer wail on. When Obi become president let j not defend the naira after falling tonrecord lowm

Write in your local dialect and hire an interpreter please.

People just talking trash on this thread with words like defending the naira, subsidising the naira etc.
One of the statutory duties of the CBN is to provide FX for those that need it. That is not defending the naira. Defending the naira means picking a particular values for the naira and sticking to that value. Currently, the dollar is bought by the CBN on a willing buyer willing seller protocol. The seller/buyer fixes the price and the CBN sells to others based on that. When there's a shortfall, the CBN support it.
The word floating the naira doesn't mean the CBN will no longer sell dollars. It means no fixed price and no subsidy. It means sell as you buy

RealTrump:
The amount used to subsidize naira for just 6 weeks (over N3trillion), they can use to subsidize electricity for one full year.

The fear of BAND A

Clever by half. What about the money they realize zed from the sales of the dollars or they just gave it out for free?

Lol

I thought they said that the naira was not being defended.

So Tinubu and his patch patch CV CBN governor are doing the exact same thing they accused Emefiele of doing, then turning around to blame Emefiele for their inefficiency, which has ensured that our naira have become worthless.


This is truly a government run by a Notorious narcotics drug trafficker engaging in criminal state capture

Misterone:
People just talking trash on this thread with words like defending the naira, subsidising the naira etc.
One of the statutory duties of the CBN is to provide FX for those that need it. That is not defending the naira. Defending the naira means picking a particular values for the naira and sticking to that value. Currently, the dollar is bought by the CBN on a willing buyer willing seller protocol. The seller/buyer fixes the price and the CBN sells to others based on that. When there's a shortfall, the CBN support it.
The word floating the naira doesn't mean the CBN will no longer sell dollars. It means no fixed price and no subsidy. It means sell as you buy

You don't understand what your re saying. Floating means allowing market forces to determine price, it doesn't mean CBN will sell or not sell dollars as U claim.

What the report means is that CBN has now reverted back to Emefiele n FIXED the price. The true value of the currency is not being represented as they now spend our foreign dollar reserve to pay the difference.

The foreign reserve is around $33B which means at this rate, we will have no foreign reserve in like 18months n by then, d currency will float itself cos the market ALWAYS wins.


You should get some education. If they will hire zombies, they shd at least hire sound ones.

Update: Some education for the zombies

@PressMyButton

The value of a currency is determined by demand n supply.

But this is just a simplistic way of saying it as things like inflation, interest rate against d USD, how attractive Ur country is to investors n what U import vs. what you export all affect the currency value. I could go deep into how these factors made our currency useless but APC needs to hire me to conduct a seminar for their e-warriors

In a fixed regime like what Naija has reverted to, d value of naira to the dollar is controlled. The value is not necessary fixed to a particular amount, but it is controlled.

Remember, that the value of a currency is high when the demand for that currency is high. But, in order to artificially increase the value of their currency, central banks often play one trick.

As d naira falls, d central bank will deep their hands into our foreign reserve. They take our dollar reserve to buy more naira. Once d market sees that "ahhh, people are buying plenty naira o," it means d demand for naira is high, hence d value of the naira will rise. High demand= high value.

Saudi Arabia also defends their currency, but unlike Nigeria which has a paltry $34'ish Billion in reserve, we can boldly say that at $1.5T, Saudi has an endless reserve of dollars n can do whatever d hell they like.

Going by Nairametrics, this is how we have now burned through $1B in 18 days.

MyMouth:
So CBN should have sat down and let the naira fall to 2000 so u can make money ko?? God catch you!

What's that not the whole essence of the floating?

How's this news
Did cbn ever deny defending the naira
Zombies only chose to deceive themselves

RealTrump:


I am not even angry that they are defending the currency. If U come out and say you are now playing défense , I no fit vex because I like defending too like Mourinho

But it was been said as if the naira was gaining due to some miraculous monetary policy

How is CBN defending the naira?. The fact that CBN is intervening in making dollars available in the market does not amount to defending the naira.

DMerciful:
They're paying fuel subsidy and defending the naira all but at a higher price.

This is the economy of people with patch patch CVs

Spoken truly ignorantly.

ambale:


What's that not the whole essence of the floating?

Naira was floated, the gap between between the official and parralel rate is almost unified.

$1b in 18days does not indicate everything was expended in the forex market. CBN has other sectors of concern. CBN sold $50,000 each to 1400 BDCs in a week and that's not even close to a billion dollars. If CBN does that twice in a month, still doesn't come close to 1billion dollars. The fact that reverses dipped from $34b to $33b must not generate unnessary assumption how the 1billion dollars was used. It could as well have been used in some other sector of the economy.

This is public knowledge. Only APC bandits think otherwise.
To think that zombies 🧟‍♂️ were opening their rusted teeths claiming Tinubu, their little god is working because of interim naira gain is laughable.

PressMyButton:
$1b in 18days does not indicate everything was expended in the forex market. CBN has other sectors of concern. CBN sold $50,000 each to 1400 BDCs in a week and that's not even close to a billion dollars.

^^^ one of dem palm oil teeth Tinubu defenders don resume work.

I don't believe this report

Who takes a dread-wearing blogger, pained speculator and piiigg serious

The CBN told us our reserve is rising. This was around 2-3 weeks ago.

Yet, this stupid blog is telling us that our forex reserve started depleting since March 18.

The person behind this fake news should be arrested and shot!

Anyway, with refineries coming on board and current bank recapitalisation, the pressure for dollar will definitely reduce and Naira will gain even further.

Hoelujohn:

Clever by half. What about the money they realize zed from the sales of the dollars or they just gave it out for free?

They are very ignorant, they think CBN gives it to BDCs for free.

Donaldoni:
I don't believe this report

CBN can never sell $1billion to BDCs in 18days, that's impossible.

RealTrump:


You don't understand what your re saying. Floating means allowing market forces to determine price, it doesn't mean CBN will sell or not sell dollars as U claim.

What the report means is that CBN has now reverted back to Emefiele n FIXED the price. The true value of the currency is not being represented as they now spend our foreign dollar reserve to pay the difference.

The foreign reserve is around $33B which means at this rate, we will have no foreign reserve in like 18months n by then, d currency will float itself cos the market ALWAYS wins.

You should get some education. If they will hire zombies, they shd at least hire sound ones.

Can you tell us the fixed rate the naira is pegged at?. container analyst. Bunch of losers.

PressMyButton:

CBN can never sell $1billion to BDCs in 18days, that's impossible.

Some pained speculators are behind this fake news.

Trust CBN to debunk the rubbish first thing tomorrow.