Author: Julius Alagbe

Nigeria’s gross external reserves balance increased to about $37.869 billion amidst sustained foreign currency inflows into the economy, data from the Central Bank (CBN) showed.

GCR Affirms AIICO Capital Limited Rating with Stable Outlook GCR Ratings (GCR) has affirmed AIICO Capital Limited’s national scale long- and short-term issuer ratings of A-(NG) and A2 (NG) respectively, with a stable outlook. In a rating note, GCR said The affirmation of AIICO Capital Limited, the asset management company ratings reflects the sustained strong group support from its assimilation and importance to its parent, AIICO Insurance Plc. Also, the ratings balance the asset manager’s good risk position and adequate liquidity against an intermediate leverage assessment due to significant on-balance sheet exposures, GCR said. The rating note stated that AIICO…

Ethiopia to Access $345 Million IMF Credit Facility Ethiopian authorities have reached staff-level agreement on economic policies to conclude the first review of the four-year US$ 3.4 billion ECF arrangement with the International Monetary Fund (IMF) staff. In a statement, the multilateral lender said formal completion of the review by its Executive Board would give Ethiopia access to financing of about US$345 million.   Implementation of Ethiopia’s homegrown economic reform program, including the adoption of a floating exchange rate regime in late July, is advancing well, IMF said. The Fund said the exchange rate in the official market has largely closed…

Sustained riskoff sentiment on the Federal Government of Nigeria (FGN) bond persisted in the secondary market over subdued

With an expectation to keep returns optimsed, the Nigerian Eurobond gained foreign investors’ attention

Money Market Rates Climb Despite FGN Sukuk Inflow The money market rates climbed further despite the fact that inflows from the matured FGN Sukuk hit the financial system. Liquidity level kept transactions tightened as the market sought to allocate funding appropriately to best use among key players.  Investment analysts reported that opening system liquidity improved because of inflows from FGN Sukuk 2024 maturity on Thursday, according to AIICO Capital Limited.  A total sum of N335.78 billion inflows from FGN bond coupon payments was recorded in the financial system, according to Cordros Capital Limited. Even with this, interbank rates closed higher…

Naira Rises Sharply on CBN Action, Rising FX Reserves The naira rises sharply to N1,576 against the US dollar in the foreign exchange (FX) market following notice of FX sales to Bureau de Change (BDC) operators. The significant daily exchange rate movement was driven by improved FX liquidity conditions in the currency market yesterday. MarketForces Africa reported that the Central Bank of Nigeria (CBN) announced $20,000 FX sales to BDCs at N1,579 per US dollar, capping the operators spread at one percent of their respective purchase rate. The US dollar sold to BDCs reduced demand pressure in the parallel market…

CBN Sells OMO Bills to Investors at 24.36% Interest Rate The Central Bank of Nigeria (CBN) sold OMO bills at the spot rate of 24.36% to investors at the primary market auction on Thursday. t the OMO auction, the CBN offered ₦500 billion across standard maturities, which are 96-day, 194-day, and 362-day papers. However, demand was weak, with offers totaling ₦252.90 billion only seen for the longest-dated instrument, CardinalStone Securities Limited told investors in an emailed note. The investment firm explained that bets on CBN OMO bills by investors resulted in a bid-to-offer ratio of 0.51x, with the stop rate…

NGX Loses N267bn as Investors Sell MTN, OANDO Shares Equities investors lost about N267 billion due to sell side activities on the Nigerian Exchange (NGX) after days of gaining streaks. Post rate hike profit picking on stocks, which recently recorded strong price appreciation, drove down equities market performance indicators on Thursday. Stockbrokers said key performance indicators plunged by 0.47% while year-to-date return moderated due to sizeable selloffs witnessed in the market. The NGX All-Share Index reduced by 463.86 basis points, reflecting a 0.47% decrease to close at 98,523.56. This downturn snapped the market’s four-day bullish streak, with investors taking profit…

OPEC Projects 24% Increase in Global Oil Demand Global energy demand will increase by over 24% by 2050 compared to 2023, according to the World Oil Outlook 2050 by the Organization of the Petroleum Exporting Countries (OPEC). The oil group forecasts that primary global energy demand will increase to 374.1 million barrels of oil equivalent per day (boepd) in 2050, representing a rise of around 72.9 million boepd from the 2023 level. The average annual growth rate between 2023 and 2050 is expected to be 0.8%, with growth decelerating towards the end of the outlook. ‘This is in line with…