Nigeria's foreign exchange reserves declined substantially in the first three weeks of January, falling by $832.62 million between January 6 and 21. This sharp drop highlights the current challenges in Nigeria's foreign exchange market.

Data from the Central Bank of Nigeria (CBN) published on its official website highlights that Nigeria's foreign exchange reserves stood at $40.92 billion on January 6, 2025. However, by January 21, this figure had fallen to $40.09 billion, a drop of 2.03% in

This sharp drop highlights the pressure on Nigeria's reserves in a context of ongoing currency market challenges and macroeconomic uncertainty.

Analysts attributed this decline to two main factors: international debt service obligations and CBN foreign exchange interventions.

The decline in reserves highlights the continued financial pressure exerted by Nigeria's external obligations and the delicate balance that the CBN must maintain between debt repayment and stabilizing the foreign exchange market.