Weekly Market Review: Vol. 100
Prologue The $/₦ appears stable sub 1,500 and the climbing interest rate environment appears to have slowed amidst tight money market liquidity and very high inflation. Efforts to curb inflation have been consistent, but do not seem to be yielding desired results as fast as expected perhaps due to the peculiar brand of inflation prevalent […]
Weekly Market Review: Vol. 99
Prologue Last week, Fitch noted significant fiscal and monetary reforms undertaken by Nigeria over the past year to stabilise the macroeconomic environment and enhance policy coherence and credibility. Despite these efforts, Nigeria faces substantial challenges in debt management. Fitch highlighted the critical importance of the ongoing Foreign Exchange (FX) reforms in boosting Foreign Direct Investment […]
The Nigerian Economy 1 Year After
Prologue On Wednesday, May 29, 2024, President Bola Ahmed Tinubu’s administration marked its first year in office. A year characterised by fast-paced developments in many ways giving some the impression that it has been much longer than a year. Upon assuming office in 2023, one of President Tinubu’s earliest actions was the swift removal of […]
Weekly Market Review: Vol. 97
Prologue Last week, attention was centred on the MPC meeting, as the CBN further tightened conditions. The Monetary Policy Rate (MPR) was hiked 150 basis points from 24.75% to 26.25% as the asymmetric corridor, Cash Reserve Ratio (CRR), and Liquidity Ratio (LR) were maintained. Analysts hadprojected a hike not exceeding 100 basis points to 25.75%, […]
Weekly Market Review: Vol. 96
Prologue In recent times, the FX rates have fluctuated consistently to the extent that there is no guaranteed level at which the FX rates can be estimated to settle at each given time. While there have been many speculations on the reasons for the fluctuations and its impact on the economy and individuals, stakeholders have […]
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 […]