Nigeria’s foreign reserves depleted by $1 billion in August 2019. This is reflected in the data published on the website of the Central Bank of Nigeria (CBN).
According to the data obtained from the apex bank’s website, Nigeria’s foreign reserves stood at $45 billion on the 25th of July 2019, while the figure has recorded a decrease and stood at $44 billion as of 23rd August 2019.
A closer look: Nigeria’s foreign reserves crossed the $45 billion thresholds in May 2019. Hence, the reserves had built significantly until the recent free fall.
- The latest drop is the biggest of Nigeria’s foreign reserves in 17 months.
- The last time Nigeria posted exactly $44 billion reserves was March 2018.
- Nairametrics had equally published in its recent articles that the country’s reserves have been falling in recent weeks.
- In May 2019, the external reserves rose by $212.2 million to hit $45 billion mark
- Specifically, it took Nigeria 8 months to build the external reserves to hit the $45 billion in May 2019.
- On August 7th, a report by Nariametrics established the external reserves fell by $327 million in less than four weeks.
The reasons: While this is a major concern for the Nigerian economy, possible factors that must have triggered this big fall include the big drop in oil price, rise in the importation, CBN intervention foreign exchange windows among others.
- For instance, Brent oil price currently hovers around $50 a barrel, as trade tension between the U.S and China intensifies.
- As at the time of filing this report, data from oilprice.com shows that bent crude oil price closed at $58.3 a barrel on Tuesday.
- An earlier report showed that the sharp drop in oil price might threaten the implementation of Nigeria’s 2019 budget that was benchmarked at $60 crude oil per barrel.
- Other factors that may be responsible include the slow down in the capital market and possibly CBN interventions in the Investors and Exporters’ window (I&E).
- Also, the growing external debt may also be frustrating the Federal Government into a financial strain.
- While Nigeria’s debt profile has become worrisome, with the declining oil price, the country’s reserves are the last resort.
Brewing Concerns: The Central Bank moves in recent times suggest that the declining foreign reserves are a major source of concern. Analysts have noted that the CBN would have to respond with policy measures to avert slump in the economy in the face of unfolding trade realities.
- The most recent policies of the CBN to conserve the country’s reserves include the planned Forex restrictions on food importation, milk and other dairy products.
- The major decline in the country’s reserves means the continuous fall in oil prices is already biting very hard and this may put the economy in a bad state.
PayPal is buying a Crypto security startup for less than $200 million
PayPal is set to outrightly purchase a crypto-security firm, Curv as part of its campaign in building its crypto ecosystem.
PayPal is set to outrightly purchase a crypto-security firm Curv as part of its campaign in building its crypto ecosystem, the company disclosed today.
According to a report credited to CNBC, the deal is estimated to be worth less than $200 million, it’s expected to close before June this year.
The company’s stock price however recorded some selling pressures at the time of writing amid rising U.S Treasury yields and greenback keeping global investors on their toes.
The crypto startup about to be acquired by PayPal provides companies with Crypto security technology via the cloud. PayPal revealed that the purchase would help its expansion on supporting crypto.
“The acquisition of Curv is part of our effort to invest in the talent and technology to realize our vision for a more inclusive financial system,” PayPal’s Jose Fernandez da Ponte said in a statement.
In a press statement seen by Nairametrics, Dan Schulman, president, and CEO, PayPal, gave key insights on why the global payment company was going crypto; The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of; financial inclusion and access, efficiency, speed, the resilience of the payments system and the ability for governments to disburse funds to citizens quickly.
“Our global reach, digital payments expertise, two-sided network, and rigorous security and compliance controls provide us with the opportunity, and the responsibility, to help facilitate the understanding, redemption, and inter-operability of these new instruments of exchange,” he said.
Furthermore, he said, “We are eager to work with central banks and regulators around the world to offer our support and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce.”
This offering was made possible through a partnership with Paxos Trust Company, a regulated provider of crypto services and products.
Transcorp Hotels launches Aura, an online marketplace for accommodation and experiences
Nigeria’s largest hospitality brand launches a new platform for booking vacation homes, holiday lets, and experiences.
Africa’s leading hospitality brand Transcorp Hotels Plc. has announced the launch of Aura, a new digital platform through which people can book accommodation, restaurants, and experiences.
The new brand, Transcorp’s first in the alternative accommodation segment, is part of the company’s asset-light model, leveraging technology to deliver true hospitality, exciting experiences, and drive shareholder value.
“It’s a new dawn in the hospitality industry! I am thrilled to introduce you to Aura by Transcorp, the digital platform we are using to connect people to quality accommodation, great food, and awesome experiences,” Managing Director and Chief Executive Officer of Transcorp Hotels Plc., Dupe Olusola said.
“For more than 30 years, Transcorp Hotels Plc has been at the forefront of creating a superior guest experience at our locations. Today, our commitment to innovation has offered us an opportunity to extend this beyond the hotel premises,” Olusola added.
The launch of Aura by Transcorp is one of the most significant developments in the company’s history as it seeks to transform the travel and tourism industry in Africa by focusing on three important components of travel, whether for leisure or business — where you stay, what you eat and how you spend your time. With its people-driven hospitality model, Aura is set to revolutionise travel and help remind Africans of our deep history of hospitality.
Speaking on the launch of Aura, Obong Idiong, Chief Executive Officer at Africa Prudential Plc, Aura’s technology partners, expressed his excitement. “Finding the right accommodation when you travel can be incredibly complex. Options available for the right prices are often limited, and travellers sometimes end up with accommodation that taints the travel experience. Transcorp Hotels Plc has been able to fix that with Aura and we are proud to be associated with them.”
“To ensure topnotch user experience, we built a solution to drive digital transformation through the adoption of shared living spaces for the Aura business. With an advanced search algorithm powered by artificial intelligence, Aura determines the relevance of locations taking into consideration, the customers’ preferences and requirements to meet them at the point of their needs,” Idiong added.
Priscilla Adeboye, a travel enthusiast and early adopter of Aura, said the global pandemic has pushed international travel down her list. “But I still want to be able to take some time off work or spend a weekend away from home with the family. I have found incredible homes on Aura that meet my need for space and privacy.”
Working with thousands of partners across Nigeria and different cities in Africa, Transcorp Hotels Plc. is building the continent’s largest platform for people-driven hospitality. While travellers enjoy the right selections at the best prices on Aura, hosts can also earn a lot of money by receiving guests in their unoccupied homes and sharing the local culture with them.
For travellers who would rather stay in hotels, Aura also has a great selection of some of the best hotels in every city.
With the launch of Aura, Transcorp Hotels Plc. has further cemented its leadership in the hospitality industry and reinforced its commitment to innovation and superior guest experience across different demographics.
Guests and hosts can sign up at aura.transcorphotels.com to start booking or hosting. The service is currently available in Nigeria only, but the company said plans are already in place to expand to major cities in Africa.
Transcorp Hotels Plc is one of Africa’s leading hospitality companies, committed to redefining service standards across the continent while remaining truly and authentically African.
Aura by Transcorp
Aura is Africa’s best platform for connecting travellers with great accommodation, good food, and memorable experiences. The platform is also an avenue for people with unoccupied homes, hotels, restaurants, or different skill sets that may interest others can earn an income by becoming hosts.
Nairametrics | Company Earnings
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