Foreign Currency

What is pushing the Nigerian naira to record lows?

How big are Nigeria’s forex reserves?

The country’s foreign exchange reserves dipped to a six-year low of $32.87 billion at the end of December, according to central bank data.

Last August, the central bank published audited accounts for the first time since 2018, and revealed that its reserves included a $19 billion commitment in derivatives – slashing the liquid amount of the reserves.

JPMorgan calculated that the country’s net FX reserves stood at $3.7 billion as of the end of 2022, “significantly lower” than prior estimates.

Nigeria’s crude excess account had $473,755 as of August last year, the last time the data was published, down from a peak of $20 billion in 2008, after successive governments withdrew dollars to support the naira and budget spending.

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