Central Bank of Nigeria (CBN) has attributed the $2.57 billion drop in FX reserves during Q1 2025 to foreign debt servicing. Despite the decline, the bank projects a recovery in the coming months.
Investor interest in FGN bonds stayed high despite a decline in offer volumes, with total subscriptions reaching N2.83 trillion in Q1 2025. The government's cautious borrowing strategy reflects efforts to manage debt amid rising interest rates.
Nigerian naira strengthens against the dollar, investors wonder if the rally will last. With inflation adjustments, monetary policy shifts, and FX market dynamics in play, the currency faces a crucial test in the coming weeks.