Data showing the Central Bank of Nigeria (CBN)’s rare interventions in the foreign exchange market prove that it is not defending the naira with its foreign reserves.

Data from FMDQ Securities Exchange shows the CBN has only sold $581 million in the official market, otherwise known as NAFEM, this year.

That means the CBN’s sales accounts for only 3.2 percent of the total market turnover of $17.938 billion in the same period.

The data which shows the paltry dollar sales of the CBN in the FX market contradicts claims that the Abuja-based bank has been burning through its reserves to defend the naira.

The apex bank has also sold around $60 million to BDCs over the last two months since it resumed dollar sales to them this year. That’s yet more proof that the naira appreciation seen over the last month is not being driven by CBN interventions.

Current figures from the CBN, as of April 15, 2024, reveal that the FX reserves sat at $32.29 billion, a decline from $34.45 billion recorded on March 18, 2024. 

The decline is down to debt repayments rather than defending the naira, according to Olayemi Cardoso, the CBN governor.

"What you see with respect to the shifts in our reserves is the shift you will find in any country’s reserve situation where for example debts are due and certain payments need to be made and they are made because that it also part of keeping your credibility intact," Cardoso said during the IMF/World Bank spring meetings Wednesday.

Nigeria faces significant external debt service requirements, including payments on Eurobonds and other international financial obligations.

The repayments of these debts require substantial amounts of foreign currency, further draining the reserves.

emkz:


I know that this propaganda is what many of you have been promoting on social media. Despite the CBN Governor saying that he is not defending the naira, you chose to propagate the lie that the reserves are being depleted to defend the naira.

What is this lie meant to accomplish?

Let us even assume the reserves are being depleted. Are there no inflows into the country's accounts? Do you realize that funds which ought to be used to pay a few fat pigs subsidies are now available for other things like clearing legitimate fx backlogs? Are you also aware that foreign remittances alone can help cushion most of Nigeria’s monthly fx obligations? Do you know that not paying out fx directly to beneficiaries of foreign remittances keeps the funds out of the system and be channeled into other things?

Are you remotely aware that $2.3billion came into Nigeria through foreign remittances in February alone?
https://www.reuters.com/markets/currencies/nigeria-sees-surge-forex-inflow-overseas-remittances-rise-2024-03-08/

Do you even know that Nigeria earns money from exports, imports through duties, royalties, mining and even other FDIs?

Many of you need to curb your hatred for Nigeria. You wish the worst upon Nigeria to justify your ego for not voting the person who defeated your candidate. People with such mindsets are evil and should not he in decent company.

For the first time, I am seeing people who understand the economy taking measures to help our country.

But one final truth must be said: some of you would rather die than see Nigeria develop. But guess what: Nigeria shall rise and work for everyone. Anyone who does not wish such until their candidate wins: may their evil wishes NEVER come to pass upon this nation.

Melagros:
COMRADES propaganda at its peak

emkz:


It is not propaganda. It is an investigation by independent sources. Try and read and avoid ignorance peddling like someone who reasons anally.

thesicilian:

The worst thing you can do with your time is to try and engage the emergency lovers of Nigeria in a logical conversation. Leave them to believe whatever they want to.

emkz:


Brother, we must. These people are not exposed at all. We have see their likes set countries on fire. They have no clue about nation building and want to burn down things because they lost elections.

While my intention is not to change them, my efforts are to prevent others from being converted, especially their children and fencesitters who may be indoctrinated with their poison.

emkz:


Brother, we must. These people are not exposed at all. We have seen their likes set countries on fire. They have no clue about nation building and want to burn down things because they lost elections.

While my intention is not to change them because they are far gone, my efforts are to prevent others from being converted, especially their children and fencesitters who may be indoctrinated with their poison.

"What you see with respect to the shifts in our reserves is the shift you will find in any country’s reserve situation where for example debts are due and certain payments need to be made and they are made because that it also part of keeping your credibility intact," Cardoso said during the IMF/World Bank spring meetings Wednesday.

Lizzysamuel:


Shut up oo.

Nobody takes anyone that supported Buhari and his policies for 8 years serious.

You guys can continue in your sychophancy.

Real Nigerians will always counter your propaganda and lies. If you like cry

emkz:


https://businessday.ng/news/article/data-shows-cbn-not-defending-naira-with-fx-reserves/

Nlfpmod

Iamgrey5:
I don't understand the need for people to attack the stability of Naira based on limited knowledge of the operations of the central bank?

Even if CBN is defending Naira with our reserve, why should we encourage speculators to drag our currency to a terrible rate by stroking fear?

Don't they understand the poor that don't have money to trade dollars will suffer the most?

I am surprised a so called Activist like Aisha Yesufu is acting like a bitter soul.

predictor1:
That lady Aisha whatever was actually encouraging people to keep on speculating against naira. You see the grouse people have against obidicianries?

Iamgrey5:
She was actually telling speculators to hoard dollars that they don't need for any transactions to force the of the Naira against Major currencies to crash.

I have never seen opposition actively encouraging economic saboteurs in my life.

emkz:


It is not propaganda. It is an investigation by independent sources. Try and read and avoid ignorance peddling like someone who reasons anally.