Nigeria’s net external reserves declined to an all-time low of $3.7 billion as at the end of last year, according to an August 17 report by American multinational financial services firm, JP Morgan.
In its new report, JP Morgan stated: “Based on partial information from the audited financial accounts, we estimate that CBN’s net FX reserves were around US$3.7bn at the end of last year, from US$14.0bn at the end-2021”.
In arriving at the estimate, JP Morgan made a few assumptions which include: “FX forwards ($6.84bn), securities lending ($5.5bn) and currency swaps ($21.3bn); and estimating currency swaps by backing out FX forwards and outstanding OTC Futures balances from an overall aggregate published in the financial accounts,” the report said.
Meanwhile, the global investment bank, has revealed Africa’s biggest economy is upping its game in a bid to unlock $17 billion from asset sales, a move aimed at relieving pressure on the country’s struggling FX liquidity.
Recall that it had earlier reported Nigeria plans to unlock the N180 trillion trapped in dead or idle government assets as a renewed hunt for cash heats up.
Over 70 entities have been captured in a national asset register that aims to identify the country’s vast and mostly idle assets, according to the Ministry of Finance Incorporated (MOFI), whose work it is to build the critical database that will help unlock badly needed cash for the government.
