₦airaland Forum

Nigeria’s foreign exchange (FX) reserves have dipped by about $505.68 million (1.37%) in August 2024.

This is according to the latest data on the reserves from the Central Bank of Nigeria (CBN).

The marginal decline in the country’s external reserves coincided with the Nigerian government’s issuance of a $500 million domestic dollar bond, which is expected to provide much-needed support to the external reserves.


The CBN reported a reduction of $505.68 million, bringing the reserves down from $36.827 billion on August 1 to $36.321 billion by August 29, 2024.
Data from the CBN indicate a consistent decline throughout August, with a notable dip in the final week.

The reserves, which stood at $36.827 billion at the beginning of the month, gradually decreased as the weeks progressed.

By August 8th, the reserves had decreased to $36.848 billion, and by mid-month, they had further dropped to $36.529 billion on August 15th.

The decline continued steadily, reaching $36.444 billion by August 22nd and then $36.321 billion by the month’s end.

First time in four months

The dip represents the steepest monthly decline in Nigeria’s forex reserves since April 2024.

This persistent decline comes after a four-month period of about $4 billion growth in the external reserves. It also means that the reserves have lost about 12.64% of its four-month gain in August 2024.


It further highlights the struggle faced by Nigeria’s financial authorities in maintaining reserve levels amidst ongoing economic pressures, including the need to meet import demands and debt obligations, as well as manage liquidity for the naira’s stability.

What you should know

In the first week of August, the Central Bank of Nigeria (CBN) sold $876.26 million at N1,495/$1 to 26 qualified banks in its latest Retail Dutch Auction.

According to a statement from the CBN, a total bid of $1.18 billion was received from 32 dealer banks. However, bids from six banks were disqualified, as four banks did not meet up with the deadline while two did not provide bids in their submitted templates.


Amid the decline in FX reserves, the Nigerian official foreign exchange (FX) market experienced a marked decline in turnover in August, despite the initial Retail Dutch Auction conducted by the CBN.

Data obtained from the FMDQ by Nairalytics, the research arm of Nairametrics, reveals a reduction of $1.08 billion, with total turnover falling to $3.25 billion, from $4.34 billion recorded in July 2024.

This decline of 25% highlights the ongoing challenges faced by the official FX market in terms of liquidity and stability.

The average daily FX turnover decreased from $189.42 million in July to $144.71 million in August, reflecting a 23.61% reduction. This decline suggests a significant drop in market activity, indicating increasing difficulties in accessing foreign currency.

On August 19, 2024, the federal government of Nigeria officially issued a $500 million domestic dollar bond.

This bond, part of the government’s financing initiatives, has a 9.75% per annum interest rate and is set to mature in 2029.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated that the $500m domestic dollar bond will enhance external reserves and help stabilize the foreign exchange situation in the country.

DAILY NIGERIAN gathered that Mr Cardoso recently procured six armored Lexus LX 600 2023 models for himself and four deputies at the cost of over N10 billion.
According to www.fox7austin.com, the full-size LX 600 is based on the latest Toyota Land Cruiser, which is a favorite of government agencies and aid organizations operating in hostile areas.
“The LX 600 is aimed more at the rich and famous looking for protection and includes a host of features that turn their trucks into luxurious bunkers.
“The vehicle has been fully armored to take shots from a 7.62mm rifle and has been certified to be able to withstand simultaneous blasts from two hand grenades.
Along with the ballistic bodywork and glass, the vehicle is equipped with protection for its engine, cargo area and fuel tank. It rides on a beefed-up suspension to handle the extra weight and run-flat tires to keep it moving under all circumstances,” the website said.
Options include a siren, fire suppression system, night vision cameras and escape hatches in case it is rolled or otherwise disabled.
According to the experts, the standard LX 600, with its 409 hp turbocharged V6 and 4×4 drivetrain, starts at $88,245, while the armored versions cost well over $200,000, depending on the configuration.

Oghighirhighi:
From the look of things, this so-called CBN mr cardoso will die of cardiac arrest very soon.

Omooba77:
https://nairametrics.com/2024/08/31/breaking-forex-reserves-dip-by-505-68-million-in-august-biggest-drop-in-four-months/