Author: Olu Anisere

Naira Falls as Spike in FX Demand Eclipses CBN Interventions Even with two times FX sales to banks, the Naira depreciated on Friday, trading at N1,475.35 to the dollar at the official foreign exchange market, according to figures released by the Central Bank of Nigeria (CBN). The decline marked the end of a week characterised by fluctuating performance, during which the local currency experienced steady but mild depreciations over four consecutive trading days. CBN data revealed that the Naira weakened by N4.32 on Friday, representing a 0.29 per cent loss compared with Thursday’s rate of N1,471.02 per dollar. The local…

Nigeria’s External Reserves Provide 11-Month Import Cover – CBN The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, says the country’s economic reforms are yielding visible results, saying external reserves now provide 11 months of import cover at the current level. Cardoso said this on Friday in Washington DC at the end of the Annual Meetings of the IMF/World Bank. He said that the reforms were placing the country on the path to stability, inclusiveness, and innovation-driven growth. According to him, the country’s active participation in the week-long sessions demonstrated the country’s renewed credibility, fiscal discipline, and reform…

CBN Allots N2.1trn OMO Bills to Investors at Decent Rates The Central Bank of Nigeria (CBN) allotted OMO bills totalling N2.1 trillion to foreign portfolio investors and deposit money banks, the active players at the primary market auction on Friday. The CBN auction targeted excess liquidity in the financial system, bolstered with inflows from the Federal Account Allocation Committee disbursement to states and the Federal Government. The surplus liquidity was fuelled by N1.30 trillion FAAC inflows and N254.90 billion OMO bills that matured during the week. Even with OMO bills action, the financial system’s net long position expanded to an…

Naira Depreciates to N1,475 over US Dollar Shortfall The naira depreciated to N1475 per US dollar at the Nigerian foreign exchange market, reflecting liquidity shortfall amidst rising demand for the greenback Updated FX data released by the Central Bank of Nigeria (CBN) showed that the spot rate worsened during intraday, quoted at N1482 per dollar. Recording a weekly loss of N20 per greenback transacted at the official window, the exchange rate movement this week suggests an increase in demand for US dollars. This happened despite inflows from exporters, non-bank corporates and other sources. Missing link in the forex market including…

Fitch Affirms Ethiopia at ‘Restricted Default’ Global rating agency Fitch has affirmed Ethiopia’s Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at ‘Restricted Default’ (RD), accorded no outlook to the country’s credit rating. According to Fitch, the affirmation of Ethiopia’s LTFC IDR at ‘RD’ reflects the country’s continued default on its single Eurobond and other non-bond commercial external debt following the government’s failure to pay the USD33 million Eurobond coupon due on 11 December 2023. Ethiopia is looking to restructure about USD15 billion of external debt – including arrears, as of end-June 2024 – under the Common Framework, for which it…

FX Inflow Spikes as Nigeria Reforms Attract Offshore Investors Nigeria recorded a sharp increase in FX inflows into the economy as foreign investors demonstrated confidence in the country’s reforms. At the Nigeria Investors Forum held on the sidelines of the 2025 World Bank and International Monetary Fund Annual Meetings in Washington D.C., the Central Bank Governor and leader of the Nigerian delegation to the meetings, Mr Olayemi Cardoso, assured investors of the government’s commitment to advancing reforms and unlocking opportunities for sustainable investment and growth. This was disclosed in a statement signed by Mohammed Manga, Director of Information and Public…

Ghana Says Economic Rebounds from Crisis to Confidence Ghana is back,” Governor Johnson P. Asiama of the Bank of Ghana (BoG) declared at the IMF/World Bank meeting in Washington, three years after the country’s economy was roiled by a debt crisis. In his speech, Asiama pointed to lower inflation, rebounding growth, and growing reserves. Speaking with the IMF’s Abebe Aemro Selassie, Asiama said “tremendous” policy support from the IMF has helped Ghana in this journey. Some of the BoG’s priorities going forward include rebuilding the central bank’s balance sheets, addressing a decline in remittance inflows, and regulating crypto and fintech.…

Money Market Rates Mixed on Excess Liquidity in Banking System Money market rates mixed as financial system liquidity improved following additional placement by the deposit money banks on Thursday. Local lenders placed funds at the Central Bank of Nigeria (CBN) standing deposit facility (SDF) window, at a 24.50% SDF rate. The placement has been surging as the yield on Nigerian Treasury bills fell below the SDF rate after the monetary policy rate cut in Sept – with banks seeking to maximise earnings from interest-yielding assets. The authority’s huge liquidity mop-up via a series of open market operations in the recent…

Naira Gains as Nigeria’s Foreign Reserves Climb to $42.669bn The naira gained as Nigeria’s foreign reserves climbed to $42.669 billion on Wednesday, the highest gross balance seen since September 2019, from $42.589 billion at the beginning of the week. The local currency had seen successive depreciation on the back of increased demand for US dollar at the official window.  The market continued to experience a sharp decline in FX injections. In September, total FX sales to the authorised dealer banks at the official FX market was $150 million, helping to balance the US dollar demand and supply equation. But analysts…

Nigerian Exchange Crosses N94trn as Cement, Banking Stock Rally The Nigerian Exchange (NGX) crossed N94 trillion in market capitalisation on Thursday as cement and banking stock rallied in anticipation of the third quarter of 2025 earnings release. The stock market traded positively as investors rotated funds from the debt market amidst spot rate repricing and lower yields on naira assets. With increased positioning in risky assets, the key performance indicators climbed by 41 basis points while year to date return rose to 44.1%. Notable gainers included FirstHoldco, STERLINGNG, MAYBAKER, DANGCEM, Lafarge Africa WAPCO and others. These gainers contributed to an…