CBN Faults JP Morgan’s Report On Forex Reserves (thewillnews.com)

August 24, (THEWILL) – The Central Bank of Nigeria (CBN) has faulted the bank’s financial accounts estimation published by JP Morgan, raising concern over the motive.

The apex bank spoke through its Director, Monetary Policy Department, Dr Hassan Mahmud, during his appearance on the Money Line television programme.

JP Morgan, had estimated Nigeria’s foreign reserves as of December 31, 2022 at $3.7 billion.

The American multinational financial services had noted that factors including foreign exchange forwards, securities lending, currency swaps, and outstanding contracts have weakened Nigeria’s net external reserves to an all-time low of $3.7 billion as of the end of last year. It added that Nigeria’s net FX reserves

were significantly lower than previously estimated.

According to Mahmud, foreign reserves status and flow are not static as they change from time to time.

His words, “FX forwards ($6.84 billion), securities lending ($5.5 billion) and currency swaps ($21.3 billion); and estimating currency swaps by backing out FX forwards and outstanding OTC Futures balances from an overall aggregate published in the financial accounts.