ABUJA, April 10 – Nigeria’s foreign exchange reserves declined to $48.94 billion as of April 8, following a sustained drawdown linked to efforts to stabilise the naira during recent global market volatility.
Data compiled by Bloomberg shows reserves fell for 16 consecutive days, marking the longest stretch of decline since July 2025. Over the period, the Central Bank of Nigeria’s holdings dropped by $1.1 billion, reaching their lowest level since February 19.
The decline comes as monetary authorities moved to support the naira amid a broader selloff in emerging market assets in March, triggered by geopolitical tensions tied to the Iran conflict.
While several African currencies weakened during the period, the naira recovered early losses and remained among a small group of currencies that avoided a net decline.
To cushion the pressure, the central bank increased the issuance of high-yield short-term debt instruments aimed at attracting foreign portfolio inflows. In addition, part of the country’s oil revenue receipts and reserve buffers were deployed to maintain liquidity in the foreign exchange market.
Market participants say the intervention reflects a balancing act between currency stability and reserve adequacy. Analysts also noted that the exit of foreign investors from emerging markets heightened demand for dollar liquidity, requiring direct support from the central bank.
Despite the pressure on reserves, the naira’s relative stability suggests that recent policy measures, including tighter liquidity management and improved FX supply channels, have helped limit volatility in the currency market.
