The Central Bank of Nigeria (CBN) has clarified the reasons behind the significant decline in the country’s foreign exchange reserves, stating that it is not primarily aimed at defending the naira but to partially repay debts owed to creditors.

The CBN Governor, Olayemi Cardoso, gave the explanation during the ongoing International Monetary Fund and World Bank Spring Meetings holding in Washington D.C, United States. 

The CBN Governor, Olayemi Cardoso, explained that the recent slight shift in reserves is unrelated to defending the naira and that an uptick will be recorded soon as the country receives an additional $600m into the reserve’s accounts soon. 

Meanwhile the bank aims to minimize its involvement in the market, fostering a scenario where prices are determined through the interactions of willing buyers and sellers.