The steepest declines occurred in the last week of January when reserves fell below $40bn for the first time in months, hitting $39.99bn on January 23 and $39.77bn by January 30.

With the FX reserves at a three-month low, the consistent drawdown indicates heightened FX demand and possible interventions by the monetary authorities to maintain exchange rate stability.

The current decline is similar to the significant drop recorded in April 2024, when reserves plunged by $2.16bn within 29 days.

At the time, Cardoso attributed the decline to debt servicing and other financial obligations rather than interventions to stabilise the naira.
Punch