External Reserves Drop First Week Of January

 External Reserves Drop First Week Of January

According to data from the Central Bank of Nigeria (CBN) on daily reserve movements, Nigeria’s external reserves dipped $24.3 million in the first week of 2022 to close at $40.49 billion as of 7 January 2021.

This represents a 0.06% decline when compared to $40.42 billion recorded as of the start of the week.

The nation’s foreign reserves had gained $5.99 billion in October, following a $2.76 million gain recorded in September 2021. This is as a result of the $4 billion Eurobond secured by the FG and the $3.35 billion IMF Special Drawing Rights facility. 

However, the reserve started a downward movement in November after it crossed the $41 billion mark.

Breakdown Analysis

Nigeria’s external reserve lost $611.01 million in November, followed by a $666.17 million decline in December. Meanwhile, the annual gain for 2021 was $5.15 billion. 

CBN data shows that a total of $8.97 billion was supplied by the bank to the I&E window, SME, and Invisibles. 

The Investors and Exporters Window (I&E) is the official market for foreign exchange sales in the country after the CBN halted the sale of forex to bureau de change (BDC) operators in mid-2021. $2.77 billion had been sold to BDC operators between January and June 2021.

Kehinde Ogunyale

Freelance Investigative and Data Journalist

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