JP Morgan estimates Nigeria’s foreign reserves fell to $3.7bn in 2022

A global financial leader, JP Morgan says Nigeria’s net foreign exchange (FX) reserves fell to $3.7 billion as of 2022, contrary to $36.61 billion quoted by the Central Bank of Nigeria.

JP Morgan disclosed this recently in its latest report on Africa’s largest economy, Nigeria.

The American financial firm noted that the $3.7 billion figure is significantly lower than its previous estimate, owing to larger-than-expected currency swaps and borrowing against existing reserves.

The development comes on the heels of CBN’s five-year financial statements released following the probe of the apex bank.

“Based on partial information from the audited financial accounts, we estimate that CBN’s net FX reserves were around $3.7 billion at the end of last year, from $14.0 billion at end-2021,” the report stated.