Connect with us
nairametrics

Economy & Politics

Why the Naira is gaining amidst emerging currency losses 

Published

on

Why you should Naira Cost Average your Investments

The Central Bank of Nigeria (CBN) has attributed the decline in reserves to concerns in emerging markets. Spokesperson of the apex bank Isaac Okoroafor disclosed this on the sidelines of the Abuja International Trade Fair. According to him, the country’s foreign reserves are robust at $44 billion and can fund import requirements. 

Data from the CBN website shows reserves have dropped to $44 billion as at the 2nd of October 2018 from a high of $47.8 billion in May.

The real reasons  

While the CBN’s explanation’s are coherent, the bank may have conveniently failed to mention that it has used the reserves to keep the exchange rate stable, in the midst of a melt down in other emerging markets.

A trade war with the United States has led to the Turkish Lira depreciating against the dollar.  The South African rand has also declined against the dollar as the country’s economy has slipped into recession.

From currency market, the contagion has also moved to equities markets, including the Nigerian Stock Exchange (NSE). The All Share Index declined by 5.97% in September, and is down year to date 15.13%

GTBank 728 x 90

The Naira has however remained steady at N360 to the dollar defying emerging market contagion, and  foreign portfolio investors exiting the NSE, has also put pressure on the reserves.

The crude oil party  

The bank has been able to do this due to surging crude oil prices and steady production volumes. Crude oil started the year at the $40 mark and is forecast to hit $100 before the end of the year. The rally has been driven in part by the United States sanctions against Iran and concerns relating to a trade war between the United States and China.

 

GTBank 728 x 90

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Economy & Politics

Buhari in crucial meeting with Obasanjo, other former heads of state

President Buhari is presiding over a National Security Council meeting with some former heads of state and some security chiefs.

Published

on

Buhari in crucial meeting with Obasanjo, other former heads of state

President Muhammadu Buhari is currently presiding over a National Security Council meeting with some former heads of state and some security chiefs.

READ: Obasanjo opens garment factory, competes with Nike Art Gallery, Sam & Sara 

Although the agenda of the meeting is not made public, issues bothering on the current security situation in the country are believed to top the agenda. This follows the outbreak of violence across the country during the protest against police brutality and extra-judicial killings, which has led to the loss of lives and destruction of public assets and private properties.

READ: Update: Buhari seeks power to freeze accounts, clamp down on money launderers

According to media reports, the meeting which is coordinated from the Council Chamber of the Presidential Villa, Abuja, has in virtual attendance General Yakubu Gowon (rtd.), former President Olusegun Obasanjo, Gen Abdulsalami Abubakar (rtd.), former President Goodluck Jonathan and former head of interim national government, Chief Ernest Shonekan.

GTBank 728 x 90

READ: #EndSARS: Feminist Coalition raise Cryptos worth $126,000

Others who are physically present at the council chambers are Vice President Yemi Osinbajo;  National Security Adviser, Major General Babagana Monguno (rtd.); Chief of Defence Staff, General Gabriel Olanisakin; Inspector-General of Police, Mohammed Adamu; Director-General, Department of State Services, Yusuf Bichi; and Director-General, National Intelligence Agency, Ahmed Rufai, among others are attending with the President.

READ: #EndSARS: Buhari holds National Security Council meeting with Osinbajo, IGP, others

GTBank 728 x 90

This meeting is coming a day after President Buhari’s national broadcast on the security situation in the country calling for an end to the #EndSARS protests as their voices have been loudly heard.

Explore Data on the Nairametrics Research Website

Details later…

Continue Reading

Economy & Politics

Senatorial, State House of Assembly bye-elections postponed – INEC

Senatorial and State House of Assembly bye-elections slated to hold on October 31 in 11 states have been postponed by INEC.

Published

on

Nigeria's election delay

The 6 Senatorial and 9 State House of Assembly bye-elections slated to hold on October 31 in 11 states of the Federation has been postponed by the Independent National Electoral Commission (INEC). The vacancies were as a result of death and resignation of previous members.

According to the statement issued by its National Commissioner & Chairman, Information and Voter Education, Festus Okoye Esq., INEC said the decision was taken after meeting with the 37 Resident Electoral Commissioners (RECs) on Thursday.

Though the commission did not categorically state the reason for the postponement, feelers are that it may not be unconnected with the raging #EndSARS protests across the nation.

 

GTBank 728 x 90

Details shortly…

Continue Reading

Economy & Politics

Some Nigerians mistook promptness of FG response as sign of weakness – Buhari

President Buhari has said that FG’s promptness to consent to the demands of the protesters was taken as a sign of weakness.

Published

on

Buhari says large proportions of new COVID-19 infections now occur in communities

President Muhammadu Buhari has pointed out that the promptness with which the Federal Government acted in meeting the demands of the #EndSARS protesters seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.

This was disclosed by the president in his national broadcast on Thursday, October 22, 2020, on the current widespread violence which has engulfed the country following the protest against police brutality and extrajudicial killings.

The president said that the government listened to the protesters and after evaluating their five-point demands, they were accepted and some of them implemented, which includes the disbandment of SARS.

In his address to Nigerians, President Buhari said, “As a democratic government, we listened to, and carefully evaluated the five-point demands of the protesters. And, having accepted them, we immediately scrapped SARS and put measures in place to address the other demands of our youth.

“On approving the termination of SARS, I already made it clear that it was in line with our commitment to the implementation of extensive Police reforms.

GTBank 728 x 90

“Sadly, the promptness with which we have acted seemed to have been misconstrued as a sign of weakness and twisted by some for their selfish unpatriotic interests.

The president said the actions of these elements has caused serious violence which has led to the loss of human lives, attack on correctional facilities, destruction and vandalization of public and private properties, attack on the palace of Oba of Lagos, invasion of International Airport and so on.

While acknowledging that the choice to demonstrate peacefully is a fundamental right of every citizen as enshrined in the constitution, the president pointed out that this right to protest also imposes on the demonstrators the responsibility to respect the rights of other citizens and the necessity to operate within the law.

GTBank 728 x 90

Details later…

Continue Reading
Advertisement
Advertisement
Advertisement
ikeja electric
Advertisement
Advertisement
Patricia
Advertisement
FCMB ads
Advertisement
IZIKJON
Advertisement
Fidelity ads
Advertisement
first bank
Advertisement
bitad
Advertisement
Stallion ads
Advertisement
financial calculator
Advertisement
deals book
Advertisement
app
Advertisement