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Auditor reveals over-reporting of Nigeria’s foreign reserves
More than 40% of foreign reserves held by the Central Bank of Nigeria (CBN), about US$34bn in early August, are encumbered assets, according to the CBN’s audited financial statement for 2022. The report was published in early August 2023 and is the CBN’s first since 2015. Using the equivalent amount of securities in its foreign-exchange reserves as collateral, as of end-2022 the CBN had borrowed US$7.5bn from overseas banks and owed more than US$7bn as a counterparty in foreign-exchange forwards. In total, US$14.7bn of the CBN’s foreign reserves are claimed in some form. Nigeria’s foreign-exchange reserves, ... (full story)