External reserves decline to 3-month low on CBN’s FX market intervention

Nigeria’s external reserves have declined to $40.31 billion as of January 21, 2022, the lowest since October 29, 2021, when it stood at $41.82 billion, representing a 3.61 percent decline.

This according to analysts at Coronation Research was due to continued interventions by the Central Bank of Nigeria (CBN) in the Foreign Exchange (FX) markets.

“Our view remains that the CBN’s position is strong as the level of FX reserves remains high in the long-term context.”

Hence, it seems possible that stability will be maintained in the Investors and Exporters (I&E) window and Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rates in the near term,” the analysts at Coronation said.

Last week at the interbank foreign exchange market, the naira/dollar exchange rate closed flat at N430.00/USD amid CBN’s weekly injections of $210 million, said Cowry Asset analysts.