*The Central Bank of Nigeria, in maiden edition of its recent 鈥楳acroeconomic Outlook: Price Discovery for Economic Stabilisation鈥� report, projects a slight dip in the West African country鈥檚 reserves, which stood at $35.05 billion early July 2024, to debt service and other obligations in the economy

Isola Moses | 绿帽献妻

Citing debt servicing and other obligations in the economy, the Central Bank of Nigeria (CBN) has projected that the country’s external reserves could reduce “slightly” in 2024.

绿帽献妻 reports the CBN noted this in the maiden edition of its 鈥楳acroeconomic Outlook: Price Discovery for Economic Stabilisation鈥� report released recently.

The Bankers’ Bank particularly attributed the projected dip in the country鈥檚 reserves to debt service and other obligations.

The Bank’s Macroeconomic Outlook report stated: 鈥淭he external reserves, which stood at $33.09billion in 2023 could reduce slightly in 2024.

鈥淭his is on the assumption of continued payments of outstanding foreign exchange forward obligations, matured foreign exchange swaps, and debt service.”

The report further stated: “The expected improvement in crude oil earnings, together with recent reforms in the foreign exchange market and energy sector, however, would cushion the drop in external reserves.鈥�

It is equally noted that Nigeria鈥檚 foreign reserves crossed $35.05billion as of July 8, 2024, the first time in about a year, and has remained above that mark since then.

Likewise, as of Thursday, July 19 this year, the country鈥檚 external reserves stood at $35.77billion, according to report.

The Macroeconomic Outlook report, however, projected a marginal increase to $19.42billion from $19.17billion in 2023 for the Diaspora remittances.

The report further explained: 鈥淭his is on account of the expected improvement in global economic conditions and reforms in the foreign exchange market that allow international money transfer operators to pay beneficiaries at market-determined exchange rates.

鈥淪imilarly, the ongoing efforts by the Bank to improve efficiency, transparency and confidence in the foreign exchange market is expected to boost remittances through formal channels.”

In regard to public debt servicing, the CBN report indicated it was expected to maintain an upward trajectory, but remain on a sustainable path in 2024.

It stated: 鈥淭he expected trajectory of public debt is underscored by planned infrastructural investment, social interventions, and the securitisation of the Ways and Means Advances to the FGN.鈥�

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