Banking and Finance

Nigeria’s Foreign Exchange Reserves hit $33.69b

Nigeria’s foreign exchange reserves stood at $33.69 billion as of Oct. 27, up 4.1 percent from a month earlier, central bank data showed on Tuesday.

The bank did not provide a reason for the increase in reserves, which stood at $32.37 billion last month, Reuters reports.

Nigeria’s forex buffer has climbed 40.68 percent this year from a year ago, but is still far off a peak of $64 billion hit in August 2008.

African Development Bank Calls Off Proposed Loans to Nigeria

The African Development Bank has called off a loan to Nigeria that would have helped fund the country’s budget, instead redirecting the money to specific projects, a vice president at the lender said on Monday.

The African Development Bank had been in talks with Nigeria for around a year to release the second, $400 million tranche of a $1 billion loan to shore up its budget for 2017, as the government tried to reinvigorate its stagnant economy with heavy spending.

Single-Digit Inflation Expected Mid-2018 –Emefiele

Nigeria’s Central Bank Governor Godwin Emefiele said on Friday he expected inflation rates to fall at a faster pace and hit high single-digit rates mid-next year.

“We are very optimistic that food prices will come down, and as they come down it will help to complement the reduction in core inflation,” Emefiele told journalists on the sidelines of an investment conference at the London Stock Exchange, adding he expected a “more aggressive moderation,” Reuters reports.

CBN Supplies $285.7m to Four Sectors

Nigeria’s central bank said it had injected $285.7 million into the interbank foreign exchange market on Friday to meet requests in four industries for dollars, extending efforts to boost liquidity and alleviate shortages.

The four industries targeted are agriculture, airlines, petroleum and raw materials, the Central Bank of Nigeria said in a statement.

The central bank will “continue to play its role in easing the foreign exchange pressure on manufacturing and agricultural sectors” through dollar sales, said the statement.

Nigeria’s GDP Declines in Q3 and Q4 2016

The National Bureau of Statistics (NBS) says the Gross Domestic Product in real terms declined in the third and fourth quarters of 2016.

The NBS made this known in its “Nigerian Gross Domestic Product Report on Expenditure and Income Approach for the third and fourth quarter of 2016 released in Abuja.

According to the report, the decline followed the negative growth trend from the first half of 2016.

Overnight Rate Holds at 120% as Naira Supply Dries Up

Nigerian overnight lending rates were quoted around 120 percent on Tuesday after a court ordered a freeze on millions of bank accounts with incomplete identity documents and the central bank sold treasury securities to tighten liquidity, traders said.

The central bank has kept rates high in Africa’s biggest economy to fight inflation and currency weakness and to attract foreign investors. It has been selling treasury securities almost four times a week to soak up naira liquidity.

Central Bank Injects $195m into Currency Market

Nigeria’s central bank said on Monday it had injected $195 million into the interbank foreign exchange market, extending efforts to boost liquidity and alleviate dollar shortages, Reuters reports.

The bank said in a statement it had released $100 million earmarked for the wholesale market, $50 million for small businesses and individuals, and $45 million for certain dollar expenses such as school fees and medical bills.

FG Moves to Seize BVN-less Accounts

Justice Nnamdi Dimgba of the Federal High Court in Abuja has granted a request by Attorney General of the Federation, Abubakar Malami, for a temporary forfeiture of all funds held in bank accounts not linked to BVNs.

Also to be forfeited are funds in accounts whose ownership could not be identified.

The latter are accounts without sufficient know-your-customer credentials, PREMIUM TIMES reports.

The order followed an originating motion of notice filed by Mr. Malami on behalf of the Nigerian government on September 28.

VAT: ₦246.30b Generated in Q2 –Statistics Bureau

The National Bureau of Statistics (NBS) says that N246.30 billion was generated as Value Added Tax (VAT) in the second quarter of the year.

The bureau gave the figure in its “Sectoral Distribution of Value Added Tax’’ for the Second Quarter released on Friday in Abuja.

It stated that the value generated in the quarter was greater than N204.77 billion generated in the first quarter of the year and N187.03 billion realised in the second quarter of 2016.

CBN Sells Treasuries to Keep Naira Liquidity Tight

Nigeria’s central bank sold 98 billion naira of treasury securities on Thursday to keep liquidity tight to support the currency, a day after it auctioned 133.25 billion naira of T-bills, traders said.

The local naira currency has been stable for more than two weeks, supported by central bank interventions, foreign inflows and tight liquidity on the money markets, traders say.

On Thursday, the bank sold the 91-day bill at a higher interest rate of 16 percent plus a 196-day bill at 17.81 percent.

Pages

myfinancialintelligence.com