• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Nigeria: External reserve hits 3-month low; falls below $40 billion

3 years ago
in Economy, highlights, Home, home-news, latest News
2 min read
0 0
0
108
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Nigeria: External reserve hits 3-month low; falls below $40 billion

Nigeria’s external reserve has fallen below the $40 billion threshold it had maintained in over three months. This is according to data from the Central Bank of Nigeria (CBN).

The reserve had endured a continuous decline in recent months owing to the intervention of the apex bank in the official FX market and sustained forex crunch in the economy. Notably, the reserve level has fallen to $39.98 billion as of Thursday, 3rd February 2022.

Recall, that Nairametrics had reported that Nigeria’s foreign reserve dipped by $481.4 million in the month of January 2022, following a $66.17 million decline recorded in December 2021. The last time Nigeria’s reserve had stayed below $40 billion was in October 2021, before the addition of the $4 billion Eurobond.

What happened in 2021

The federal government of Nigeria secured a $4 billion Eurobond from the international debt market in a deal dubbed one of the biggest financial trades to come out of Africa in 2021. The issuance, which was warmly received by investors, resulting in an order book as high as $12.2 billion, giving the federal government room to raise an additional $1 billion more than the initially announced $3 billion.

The fund was used to boost the country’s reserve, hereby serving as firepower for the CBN to defend the naira. Similarly, Nigeria secured a $3.35 billion allocation from International Monetary Fund (IMF) as part of Special Drawing Rights (SDRs).

The influx of FX from these channels was able to boost Nigeria’s reserve above $41 billion in October 2021, but has since been on a downward trajectory, as demand for FX continues to outweigh supply.

RelatedPosts

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

Why the decline

The decline in the nation’s external reserve can be attributed to the continuous intervention of the apex bank in the Investors and Exporters window as a means to control the volatility in the FX market. Notably, according to data from the CBN, the bank supplied a sum of $8.97 billion in the FX market through the I&E, SME, and invisible.

Also, CBN supplied $1.42 billion through interbank, while $2.77 billion was channelled through BDC operators between January and June 2021, before the bank discontinued the sales of FX to the operators.

Also, Nigeria’s international trade balance continues to maintain a deficit, as a result of the surge in import bills compared to export value, printing a trade deficit of N3.02 trillion in Q3 2021. In addition, despite the rally at the crude oil market, already trading above $90 per barrel, Nigeria has been unable to ramp up its export earnings due to inability to improve its production quota.

It is also worth adding, that capital importation has also not been impressive in recent times, with inflows yet to return to pre-pandemic levels, hereby causing more FX crunch in the economy.

Source: nairametrics
Via: norvanreports
Tags: Central Bank of Nigeria (CBN).Eurobondhits 3-month lowIMFNigeriaNigeria’s external reserve falls below $40 billion
No Result
View All Result

Highlights

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

Trending

Features

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

MTN Nigeria Now the Most Capitalized Stock in Nigeria MTN Nigeria has surged to become the most...

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.