Thursday, November 15, 2018

Lukman Otunuga

    Higher US interest rates burn through Nigeria’s reserves

Higher US interest rates burn through Nigeria’s reserves

Defending the Nigerian Naira against the mighty Dollar has come at a steep price to the central bank of Nigeria in the form of falling reserves.Nigeria’s foreign exchange reserves have declined by roughly $2.1 billion in the last 30 days thanks to a broadly stronger Dollar and prospects of higher US interest rates.With the Fed expected to raise interest rates [...]

0 comment Read Full Article
    US-China dispute, South Africa’s recession… is the naira safe?

US-China dispute, South Africa’s recession… is the naira safe?

It has certainly been an explosively volatile trading quarter thus far as investors juggled with global trade tensions, dollar strength and chaos across emerging markets.The simmering trade dispute between the world’s two largest economies fuelled global risk aversion while a brutal sell-off in the EM space rattled investor confidence.Fears remain elevated over the turmoil in Turkey and Argentina spreading like [...]

0 comment Read Full Article
    Naira threatened by external factors

Naira threatened by external factors

External influences may impact the Naira this week, with investors keeping a very close eye on any further - turmoil with emerging market currencies after a very troubled past couple of weeks.The Naira may take some guidance from how investors view emerging markets generally, with particular attention being paid towards how the Lira reacts to the latest Turkish GDP reading [...]

0 comment Read Full Article
    Naira stable as rand, peso tumble

Naira stable as rand, peso tumble

The Nigerian Naira maintained stability against the Dollar on Thursday despite growing expectations over higher US interest rates this year.It is becoming clear that that the Central Bank of Nigeria’s repeated intervention in the FX market has resulted in a stable Naira exchange. Although this method could continue supporting the local currency, Nigeria’s external reserves may come under pressure.Sentiment towards [...]

0 comment Read Full Article
    ANALYSIS: Nigeria’s GDP drop, dollar bulls MIA as gold prices peak

ANALYSIS: Nigeria’s GDP drop, dollar bulls MIA as gold prices peak

Confidence over the health of the largest economy in Africa was dealt a blow after economic growth decelerated in the second quarter of 2018.Nigeria’s GDP disappointed in Q2 by slowing to 1.5% from the 1.95% achieved in the first quarter of 2018. Although growth during the second quarter was mainly driven by the services sector and higher than when compared [...]

0 comment Read Full Article
    Naira steady, dollar slips while gold gains slightly

Naira steady, dollar slips while gold gains slightly

The Nigerian Naira continued to witness stability against a weaker Dollar during Tuesday’s trading session.Although the local currency could remain buoyed by repeated central bank intervention, external risks in the form of global trade tensions could create headwinds down the road. With speculation of higher U.S interest rates also boosting the Dollar and accelerating capital outflows from emerging markets, this is certainly [...]

0 comment Read Full Article
    Nigeria inches closer to rate cut as outlook improves

Nigeria inches closer to rate cut as outlook improves

July was another encouraging trading month for the Nigerian economy, thanks to the stabilizing macroeconomic environment.Annual inflation eased for the seventeenth consecutive month, while positive core economic metrics pointed to further signs of improving stability. Elevated global Oil prices have boosted government reviews and heavily supported foreign exchange markets. The overall outlook for Nigeria remains positive, especially when considering how [...]

0 comment Read Full Article
    Naira stable as CBN holds rates

Naira stable as CBN holds rates

It is interesting how the Naira has witnessed stability against the Dollar after the Nigerian Central Bank kept its monetary policy rate (MPR) unchanged at 14% in July.Signs of easing inflationary pressures in Nigeria present a solid argument for an interest rate cut. However, a rate cut could accelerate capital outflows, especially when considering how the Federal Reserve is expected [...]

0 comment Read Full Article
    Trade war escalation triggers risk aversion, but gold prices fall

Trade war escalation triggers risk aversion, but gold prices fall

A fresh wave of risk aversion swept across financial markets after the United States threatened to impose tariffs on an extra $200 billion worth of Chinese goods.This unfavourable move comes just days after the two countries slapped tit-for-tat tariffs on $34 billion worth of each other’s imports. With Beijing describing the latest tariff threats as “totally unacceptable” and vowing to [...]

0 comment Read Full Article
    Nigeria inflation declines further in May ECB in focus

Nigeria inflation declines further in May ECB in focus

In an encouraging development, Nigeria’s inflation has eased to 11.6% in May, the lowest level seen in more than two years.With consumer prices slowly edging closer to the Central Bank of Nigeria’s target band of 6%-9%, an interest rate cut seems likely before year-end.The combination of easing inflationary pressures, improving economic fundamentals and ongoing foreign exchange stability could [...]

0 comment Read Full Article
    Markets muted after historic Singapore summit, oil eases

Markets muted after historic Singapore summit, oil eases

Financial markets have offered a fairly muted response to the historical Singapore summit, despite President Donald Trump describing it as being “fantastic” and “better than anyone could imagine”.Global sentiment was initially elevated after the US President and North Korean leader, Kim Jong-un, signed a denuclearization agreement which eased geopolitical tensions. However, the lack of insight offered on the steps taken [...]

0 comment Read Full Article
    Nigeria’s economy under Buhari… for better or worse?

Nigeria’s economy under Buhari… for better or worse?

It is quite thought-provoking how this month marks just over three years since President Muhammadu Buhari secured a historic victory in Nigeria’s state elections.There was a high degree of optimism over Buhari changing Nigeria for the better by reviving economic growth and fighting corruption and insecurity. Much has happened over the past few years under the Buhari regime, with the [...]

0 comment Read Full Article
    Naira steady ahead of NFP report, Euro strengthens

Naira steady ahead of NFP report, Euro strengthens

The Naira was steady against the Dollar ahead of the hotly anticipated US jobs report scheduled for release this afternoon.With the pending US jobs report potentially impacting Fed rate hike expectations, emerging market currencies like the Naira could be affected. Solid US jobs report for May that fuels speculation of higher US interest rates this year may spell more pain [...]

0 comment Read Full Article
    Fitch affirms Nigeria at B+, dollar steady

Fitch affirms Nigeria at B+, dollar steady

 Fitch Ratings has affirmed Nigeria’s long-term foreign currency Issuer Default Rating (IDR) at ‘B+’ with a negative outlook.While B+ is encouraging as the nation continues to recover, the negative outlook serves to highlight how Nigeria must break away from its reliance on oil.With Fitch expressing concerns over “the sustainability of the economic growth momentum”, the nation must strive to derive [...]

0 comment Read Full Article
    Naira stable as markets tremble over Trump’s Iran decision

Naira stable as markets tremble over Trump’s Iran decision

In a move that dealt a painful blow to global sentiment, President Donald Trump declared on Tuesday that the United States will be pulling out of the “defective” Iran nuclear deal.US stocks ended mixed on the news while oil prices fluctuated in each direction, as investors considered the potential negative ramifications of Trump’s decision. The US president adopted a very [...]

0 comment Read Full Article
    Nigeria signs currency swap deal with China, NFP in focus

Nigeria signs currency swap deal with China, NFP in focus

Sentiment towards the Nigerian economy was elevated on Friday, after the nation finally signed a bilateral currency swap agreement with China.The transaction, which is valued at 16 billion Renminbi, aims to provide sufficient liquidity to Nigerian and Chinese industrialists. This move will not only improve the speed, but also the convenience of transactions between both nations. There is a possibility [...]

0 comment Read Full Article
Advertisement
Advertisement

 

Advertisement

Advertisement

Exchange Rates

November 13, 2018USDGBPEUR
INTERBANK306397354
LAGOS359475418
KANO359476420
PH360476420
ABUJA359478419
NOTE: The black market rates represent the most prevalent. They could be slightly higher or lower among different sellers.
Advertisement
Advertisement
Advertisement