Naira weakens badly

As MPC retains policy rate, other parameters

• Food inflation to moderate as harvest starts, says Emefiele

• We must avoid blind speculation, Adedipe warns

Nigeria is grappling with additional challenges, including a faster rate of inflation, as the gap between official and parallel segment of the foreign exchange (FX) market continues to widen.

As of yesterday (Tuesday), the differential between the two windows had hit N110, which experts said would increase informal remittances and discourage genuine investors who might be waiting to bring in funds.

This comes as the Monetary Policy Committee (MPC) retained the policy rate at 11.5 per cent yesterday as it ended the last session for the year. The policy rate is the benchmark against which other lending rates in the economy are pegged.

The liquidity ratio and cash reserve ratio (CRR) were retained at 30 per cent and 27.5 per cent respectively. The governor of the CBN, Godwin Emefiele, said the Committee voted “unanimously” to retain the parameters”. He said all the three possibilities – increase, hold, reduction – had economic benefits but that the “hold option” was most desirable to “reverse the recession and achieve the medium-term macro-economic stability.”

The governor spoke on the factors responsible for the escalating headline inflation but assured that the worrisome food price would begin to moderate on the back of harvest season, which starts soon.

The retention of the Monetary Policy Rate, CRR and liquidity ratio implies that the money supply to the economy will, other things being equal, remain unchanged in the coming months. A reduction would imply a higher money supply, more consumption, more employment but higher inflation. On the flip side, an increase would have further tightened the already-contracted economy.

While the MPC meeting was being held in Abuja, the dollar was selling between N485 and N495. The value of the naira, which recorded an appreciable gain in October, retreated last two weeks; but the tension worsened after the recession call by the National Bureau of Statistics (NBS) at the weekend.

Operators, who spoke with The Guardian, said the fresh crisis is triggered by market illiquidity. They explained they were inundated with unmet demand on daily basis whereas there is no significant improvement on the supply side.

While investors and industrialists supposedly obtain FX via the official window, accessibility has been a major challenge. A parallel market operator told The Guardian yesterday that hundreds of manufacturers buy dollars from “us as most people cannot get from the Central Bank of Nigeria (CBN).”

The source said he had requests amounting to about $300, 000, which he was yet to raise, from two manufacturing companies since last week.

“Sometimes when the orders come, you raise it from three to five different individuals. But you can only get dollars from somebody who is in need of it when you require it. But everybody seems to be getting requests now. This is the challenge,” the source said.

In a phone conversation yesterday, Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Muda Yusuf, said FX illiquidity is a major challenge to the economy with serious consequences for local production.

“Most of the manufacturers do not buy much from the parallel market, they buy from the official market. But there has been a general complaint by manufacturers. There has been scarcity, which means manufacturers are unable to buy raw materials and equipment. This affects production and outputs, which has contributed to the high inflation,” Yusuf, who called for improvement on FX management framework, said.

A survey – Manufacturers’ CEOs Confidence Index for the third quarter of 2019 – conducted by the Manufacturers Association of Nigeria (MAN), had alluded to the implication of high exchange rate at the parallel market on manufacturing. The report said the majority of the manufacturers resorted to the parallel market to source forex to purchase machines and raw materials needed for production.

With continued FX liquidity, an economist and investment expert, Abimbola Olanrewaju, said the future of the economy was becoming increasingly uncertain, but noted that the monetary authority was constrained.

“The fiscal authority, which should have complimented the monetary policy, is extremely weak. The Ministry of Finance, Budget and National Planning should get to work. The market needs serious intervention to encourage local production. FX direction is a product of demand and supply. If we produce more and export, the naira will appreciate. We cannot continue to import food and expect magic,” Olanrewaju said.

But Chief Consultant at B. Adedipe Associates Limited, Dr. Biodun Adedipe, said the fundamentals were not as bad as portrayed. He dismissed the surge in the value of the dollar at the black market; saying blind speculators who exploit the panic in the market against the economy fuel it.

Adedipe, who has done some research on the nexus between economic and currency crisis, said the key market indices were bullish and that the current speculation is not supported by any fundamentals.

He, however, said government was not doing enough with positive insights to inspire confidence in the investment market.

The economist noted: “I am not worried about what is happening at the market. This is not an election year, so nobody can attribute what is happening to the activities of politicians.

And the figures show that the economy is climbing out of recession if you compare the performance of Q2 with that of Q3, and researches conducted by different organisations, including the International Monetary Fund (IMF), have shown that the economy will grow next year.”

Adedipe canvassed overhaul of Nigeria’s commercial policies, saying the country should continue to close eyes to its interest in international relations. He observed that other countries “talk about how they benefit first’ before signing any agreement.

The financial expert urged policy makers and economic managers to dust off the “market mentality” and consider the interest of local industries before signing any pact with other countries.

“Any imported item that will compete with a locally produced commodity should suffer higher import duty. People will be discouraged from buying imported items and consuming the local substitutes. That is the way it is done all over the world.

“I have engaged with people from America, Europe, Tanzania, Kenya and several other places today. Every country talks about protecting its interest; but, in Nigeria, it is a different thing. Are we producing for foreign interests or our interests? I have been part of this conversation since 1987.

We sign all manner of protocols and treaties but do we ask if our interests are protected? We accept the status of the market while creating jobs for other economies. That is why unemployment is very high here.”

Speaking about the slide of the economy, an economist, Johnson Chukwu, said there were some policy and economic missteps that made it inevitable for Nigeria to plunge into recession. He said Ghana, a country that operates a similar economic structure to Nigeria, is currently witnessing a positive growth.

According to him, the nation’s economy had been grappling with weak recovery since it emerged from the 2016 recession with GDP growth tapering around 2.3 per cent in 2019. He stated that government must build a productive economy and free up resources spent on subsidising consumption.

Chukwu, who is also the Chief Executive Officer of Cowry Asset Management Limited, also stressed the need to eliminate overlapping ministries to reduce cost of governance.

On MPC’s decision to retain MPR at 11.5 per cent, Chukwu said: “If they loosen, they would have seen more pressure in Foreign exchange (FX) and if they tighten, they would have been dealing with more contraction on the economy,” he said.


xosotin chelseathông tin chuyển nhượngcâu lạc bộ bóng đá arsenalbóng đá atalantabundesligacầu thủ haalandUEFAevertonxosokeonhacaiketquabongdalichthidau7m.newskqbdtysokeobongdabongdalufutebol ao vivofutemaxmulticanaisonbethttps://bsport.fithttps://onbet88.ooohttps://i9bet.bizhttps://hi88.ooohttps://okvip.athttps://f8bet.athttps://fb88.cashhttps://vn88.cashhttps://shbet.atbóng đá world cupbóng đá inter milantin juventusbenzemala ligaclb leicester cityMUman citymessi lionelsalahnapolineymarpsgronaldoserie atottenhamvalenciaAS ROMALeverkusenac milanmbappenapolinewcastleaston villaliverpoolfa cupreal madridpremier leagueAjaxbao bong da247EPLbarcelonabournemouthaff cupasean footballbên lề sân cỏbáo bóng đá mớibóng đá cúp thế giớitin bóng đá ViệtUEFAbáo bóng đá việt namHuyền thoại bóng đágiải ngoại hạng anhSeagametap chi bong da the gioitin bong da lutrận đấu hôm nayviệt nam bóng đátin nong bong daBóng đá nữthể thao 7m24h bóng đábóng đá hôm naythe thao ngoai hang anhtin nhanh bóng đáphòng thay đồ bóng đábóng đá phủikèo nhà cái onbetbóng đá lu 2thông tin phòng thay đồthe thao vuaapp đánh lô đềdudoanxosoxổ số giải đặc biệthôm nay xổ sốkèo đẹp hôm nayketquaxosokq xskqxsmnsoi cầu ba miềnsoi cau thong kesxkt hôm naythế giới xổ sốxổ số 24hxo.soxoso3mienxo so ba mienxoso dac bietxosodientoanxổ số dự đoánvé số chiều xổxoso ket quaxosokienthietxoso kq hôm nayxoso ktxổ số megaxổ số mới nhất hôm nayxoso truc tiepxoso ViệtSX3MIENxs dự đoánxs mien bac hom nayxs miên namxsmientrungxsmn thu 7con số may mắn hôm nayKQXS 3 miền Bắc Trung Nam Nhanhdự đoán xổ số 3 miềndò vé sốdu doan xo so hom nayket qua xo xoket qua xo so.vntrúng thưởng xo sokq xoso trực tiếpket qua xskqxs 247số miền nams0x0 mienbacxosobamien hôm naysố đẹp hôm naysố đẹp trực tuyếnnuôi số đẹpxo so hom quaxoso ketquaxstruc tiep hom nayxổ số kiến thiết trực tiếpxổ số kq hôm nayso xo kq trực tuyenkết quả xổ số miền bắc trực tiếpxo so miền namxổ số miền nam trực tiếptrực tiếp xổ số hôm nayket wa xsKQ XOSOxoso onlinexo so truc tiep hom nayxsttso mien bac trong ngàyKQXS3Msố so mien bacdu doan xo so onlinedu doan cau loxổ số kenokqxs vnKQXOSOKQXS hôm naytrực tiếp kết quả xổ số ba miềncap lo dep nhat hom naysoi cầu chuẩn hôm nayso ket qua xo soXem kết quả xổ số nhanh nhấtSX3MIENXSMB chủ nhậtKQXSMNkết quả mở giải trực tuyếnGiờ vàng chốt số OnlineĐánh Đề Con Gìdò số miền namdò vé số hôm nayso mo so debach thủ lô đẹp nhất hôm naycầu đề hôm naykết quả xổ số kiến thiết toàn quốccau dep 88xsmb rong bach kimket qua xs 2023dự đoán xổ số hàng ngàyBạch thủ đề miền BắcSoi Cầu MB thần tàisoi cau vip 247soi cầu tốtsoi cầu miễn phísoi cau mb vipxsmb hom nayxs vietlottxsmn hôm naycầu lô đẹpthống kê lô kép xổ số miền Bắcquay thử xsmnxổ số thần tàiQuay thử XSMTxổ số chiều nayxo so mien nam hom nayweb đánh lô đề trực tuyến uy tínKQXS hôm nayxsmb ngày hôm nayXSMT chủ nhậtxổ số Power 6/55KQXS A trúng roycao thủ chốt sốbảng xổ số đặc biệtsoi cầu 247 vipsoi cầu wap 666Soi cầu miễn phí 888 VIPSoi Cau Chuan MBđộc thủ desố miền bắcthần tài cho sốKết quả xổ số thần tàiXem trực tiếp xổ sốXIN SỐ THẦN TÀI THỔ ĐỊACầu lô số đẹplô đẹp vip 24hsoi cầu miễn phí 888xổ số kiến thiết chiều nayXSMN thứ 7 hàng tuầnKết quả Xổ số Hồ Chí Minhnhà cái xổ số Việt NamXổ Số Đại PhátXổ số mới nhất Hôm Nayso xo mb hom nayxxmb88quay thu mbXo so Minh ChinhXS Minh Ngọc trực tiếp hôm nayXSMN 88XSTDxs than taixổ số UY TIN NHẤTxs vietlott 88SOI CẦU SIÊU CHUẨNSoiCauVietlô đẹp hôm nay vipket qua so xo hom naykqxsmb 30 ngàydự đoán xổ số 3 miềnSoi cầu 3 càng chuẩn xácbạch thủ lônuoi lo chuanbắt lô chuẩn theo ngàykq xo-solô 3 càngnuôi lô đề siêu vipcầu Lô Xiên XSMBđề về bao nhiêuSoi cầu x3xổ số kiến thiết ngày hôm nayquay thử xsmttruc tiep kết quả sxmntrực tiếp miền bắckết quả xổ số chấm vnbảng xs đặc biệt năm 2023soi cau xsmbxổ số hà nội hôm naysxmtxsmt hôm nayxs truc tiep mbketqua xo so onlinekqxs onlinexo số hôm nayXS3MTin xs hôm nayxsmn thu2XSMN hom nayxổ số miền bắc trực tiếp hôm naySO XOxsmbsxmn hôm nay188betlink188 xo sosoi cầu vip 88lô tô việtsoi lô việtXS247xs ba miềnchốt lô đẹp nhất hôm naychốt số xsmbCHƠI LÔ TÔsoi cau mn hom naychốt lô chuẩndu doan sxmtdự đoán xổ số onlinerồng bạch kim chốt 3 càng miễn phí hôm naythống kê lô gan miền bắcdàn đề lôCầu Kèo Đặc Biệtchốt cầu may mắnkết quả xổ số miền bắc hômSoi cầu vàng 777thẻ bài onlinedu doan mn 888soi cầu miền nam vipsoi cầu mt vipdàn de hôm nay7 cao thủ chốt sốsoi cau mien phi 7777 cao thủ chốt số nức tiếng3 càng miền bắcrồng bạch kim 777dàn de bất bạion newsddxsmn188betw88w88789bettf88sin88suvipsunwintf88five8812betsv88vn88Top 10 nhà cái uy tínsky88iwinlucky88nhacaisin88oxbetm88vn88w88789betiwinf8betrio66rio66lucky88oxbetvn88188bet789betMay-88five88one88sin88bk88xbetoxbetMU88188BETSV88RIO66ONBET88188betM88M88SV88Jun-68Jun-88one88iwinv9betw388OXBETw388w388onbetonbetonbetonbet88onbet88onbet88onbet88onbetonbetonbetonbetqh88mu88Nhà cái uy tínpog79vp777vp777vipbetvipbetuk88uk88typhu88typhu88tk88tk88sm66sm66me88me888live8live8livesm66me88win798livesm66me88win79pog79pog79vp777vp777uk88uk88tk88tk88luck8luck8kingbet86kingbet86k188k188hr99hr99123b8xbetvnvipbetsv66zbettaisunwin-vntyphu88vn138vwinvwinvi68ee881xbetrio66zbetvn138i9betvipfi88clubcf68onbet88ee88typhu88onbetonbetkhuyenmai12bet-moblie12betmoblietaimienphi247vi68clupcf68clupvipbeti9betqh88onb123onbefsoi cầunổ hũbắn cáđá gàđá gàgame bàicasinosoi cầuxóc đĩagame bàigiải mã giấc mơbầu cuaslot gamecasinonổ hủdàn đềBắn cácasinodàn đềnổ hũtài xỉuslot gamecasinobắn cáđá gàgame bàithể thaogame bàisoi cầukqsssoi cầucờ tướngbắn cágame bàixóc đĩa开云体育开云体育开云体育乐鱼体育乐鱼体育乐鱼体育亚新体育亚新体育亚新体育爱游戏爱游戏爱游戏华体会华体会华体会IM体育IM体育沙巴体育沙巴体育PM体育PM体育AG尊龙AG尊龙AG尊龙AG百家乐AG百家乐AG百家乐AG真人AG真人<AG真人<皇冠体育皇冠体育PG电子PG电子万博体育万博体育KOK体育KOK体育欧宝体育江南体育江南体育江南体育半岛体育半岛体育半岛体育凯发娱乐凯发娱乐杏彩体育杏彩体育杏彩体育FB体育PM真人PM真人<米乐娱乐米乐娱乐天博体育天博体育开元棋牌开元棋牌j9九游会j9九游会开云体育AG百家乐AG百家乐AG真人AG真人爱游戏华体会华体会im体育kok体育开云体育开云体育开云体育乐鱼体育乐鱼体育欧宝体育ob体育亚博体育亚博体育亚博体育亚博体育亚博体育亚博体育开云体育开云体育棋牌棋牌沙巴体育买球平台新葡京娱乐开云体育mu88qh88

Short URL:

Posted by on Nov 25 2020. Filed under Economy, Headlines, Naira (Currency), National Politics. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

YCE, Yoruba Ronu disagree on alleged disgrace of monarchs by Obasanjo


Emefiele: DSS release detained CBN Deputy Governor


Browse Today’s Politics

Featuring Top 5/9 of Today's Politics

Our fear is that Akpabio cannot checkmate the ‘Yorubanisation’ of the financial system – Northern Senators

Browse Africa & World Politics

Featuring Top 3/2344 of Africa & World Politics

Browse National Politics

Featuring Top 5/1313 of National Politics

Pastor Enoch Adeboye: Ask God to kill me if…

Browse NNP Columnists

Featuring Top 10/1554 of NNP Columnists

Presidential Tribunal: Babatunde Fashola denies writing judgment, petitions Twitter to reveal fake news source



Group alleges plot to subvert justice at presidential election petition tribunal


November 2020
« Oct   Dec »

© 2023 New Nigerian Politics. All Rights Reserved. Log in - Designed by Gabfire Themes