Weekly Market Review: Vol. 95
Prologue In the previous week, the NAFEM rate closed at $/₦1,400.40. Last week, it closed at ₦1466.31. As it stands, it looks as though the CBN is comfortable with having the naira against the dollar anywhere around ₦1,200 and ₦1,500. Speculatively, the Naira may trend as high as this level before the end of the […]
Weekly Market Review: Vol. 94
Prologue Over the last two weeks, the Naira has devalued considerably, contrasting its strong, appreciable performance in March 2024 when it was lauded as the best-performing currency in the world by Goldman Sachs. Last week, the exchange rate for customs duty collection rose to $/₦1,441.58, exceeding the NAFEM rate, which closed at $/₦1,400.40. It is […]
Weekly Market Review: Vol. 93
Prologue In the just concluded week, reports on the Cash Reserve Ratio (CRR) and from the Federal Account Allocation Committee (FAAC) buttressed suspicion on the shortness of liquidity. Liquidity for the week (in millions of naira): Monday – 22-04-2024: -1,010,819.6 — Short. Tuesday – 23-04-2024: -885,917.99 — Short. Wednesday – 24-04-2024: -909,899.35 — Short. Thursday […]
Financial Intersection: Debt Repayments & Naira Gains
Prologue Various speculations have arisen regarding the continuous decline in the country’s external reserves, some speculating that the decline is linked to the appreciation of the naira. However, the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, has stated emphatically that these two scenarios are unrelated, clarifying that the CBN is not actively […]
Economic Outlook: The Nigerian FG’s Fiscal Move and NTB Auction
Prologue Over the last few quarters, it has been observed that the Federal Government of Nigeria has been in a repetitive pattern of borrowing and debt servicing. In 2023, the Nigerian Government obtained ₦7.9 trillion from the CBN through Ways and Means Advances, which were said to be for the purpose of servicing its domestic […]
Financial Flashpoint: OMO Auction and Tariff Hike
Prologue Last week, the Central Bank of Nigeria (CBN) conducted its first Open Market Operations (OMO) auction in the month, aiming to assert control over money supply in the system. Following a sale of a whopping ₦676.65 billion worth of securities, the CBN’s commitment to managing liquidity in the economy remains unchanging. In comparison to […]
Changing Market Conditions
Prologue Recently, the global oil market has been wrought with persistent price fluctuations. These fluctuations are attributed to various factors, one of the most significant being the ongoing conflict between Israel and Palestine. Further, incidents such as bombings of sea vessels have directly or indirectly impacted the oil supply. During the recent MPC meeting, the […]
Interconnected Realities: Bonds, State Debts & Global Economic Shifts
Prologue The Government’s latest bond auction stands as a beacon of investor confidence, with subscription levels surpassing expectations across all tenors and the convergence of market dynamics as bonds find takers through competitive and non-competitive bids. However, the unveiling of state debts cast a sobering shadow, with a speculated cumulative figure reaching a staggering ₦1.72 […]
Exploring Auctions, Euro bonds, & Policy Regulations
Prologue Nigeria’s financial outlook reflects a dynamic interplay of investor preferences, policy responses, and regulatory dilemmas. The recent Treasury Bill auctions showcase investor sentiments and the apparent plans for Eurobond’s signal aspirations for international financing. Meanwhile, the Central Bank is facing inflationary pressures in Egypt, prompting discussions about a possible interest rate hike to stabilise […]
Policy Dynamics & Market Sentiments
Prologue In the week under review, exciting developments were observed in the country’s financial sector following the ban of Binance, specifically, the recent Treasury Bills auction, which showcased significant investor interest and strategic policy measures. Concurrently, Egypt’s Central Bank implemented significant adjustments to its benchmark interest rates, reflecting broader regional trends similar to those implemented […]
