Author: Marketforces Africa

Naira Exchange Rates Reset as CBN Steps into FX Markets The naira fired up momentum against the dominant US dollar across the forex market as the Central Bank of Nigeria (CBN) stepped into the ring.  In a latest move, the apex bank is buying the naira, selling the US dollar to reset exchange rates across the informal, and official windows. For months, the apex bank had left the exchange rates across local forex market to the forces of demand and supply. Unfortunately, foreign currency demand has continued to eclipse total volume of US dollars available for transactions in the official,…

Naira Declines to N1581, FX Reserves Hit 16-Month High The Nigerian naira suffered another setback in the foreign exchange (forex) market as the exchange rate plunged to N1.581.65 against the US dollar. The spot rate worsened as eligible FX demand at the Nigerian autonomous foreign exchange market (NAFEM) eclipsed the volume of US dollars available for trade. The disequilibrium position in the currency market has damaged the value of the naira. The conditions in the forex market worsened after the Central Bank of Nigeria (CBN) withdrawn US dollar sales to authorised dealers, banks. The challenges of US dollar scarcity amidst…

Niger Unlocks $71m Loan from IMF to Boost Economy Niger government has unlocked access to $71 million loan after the Executive Board of the International Monetary Fund (IMF) completed the fourth and fifth reviews of the country’s Extended Credit Facility Arrangement (ECF), and the First Review Arrangement under the Resilience and Sustainability Facility (RSF). The decision allows for an immediate disbursement of about US$ 71 million cumulatively under the ECF and the RSF, the Fund said in a statement. IMF added that the two arrangements were extended by six months until December 2025 to ensure sufficient time to implement key…

Nigerian Equities Market Shrinks as Investors Lose N25bn The equities market capitalisation of the Nigerian Exchange (NGX) slumped by about N25 billion on Wednesday due to negative price movements in GTCO, MTN Nigeria, and Dangote Sugar Plc, among others. According to data from the local bourse, key performance indicators plunged. MTNN (-3.40%), DANGSUGAR (-1.44%) and GTCO (-0.22%) drove the day’s decline, which masked positive sentiment in FBNH (+3.94%) and UBA (+3.70%), stockbrokers said in an emailed note. The Nigerian Exchange All-Share Index dropped by 43.27 basis points today, representing a decrease of -0.04% to close at 100,032.32. Trading results showed…

OMO Auction Flops as Foreign Investors Shun CBN Offer The open market operation (OMO) bill auction conducted by the Central Bank of Nigeria (CBN) on Wednesday flopped as foreign portfolio investors’ showed little interest in the apex bank’s offers in the primary market. Nigeria has seen huge FX inflows from foreign investors positioning in OMO, Treasury bills instruments in recent times due to its high spot rate pricing. The latest data showed that the inflation rate surged to 34.19%, adding another layer of pressure to already depressing macroeconomic indicators. The country’s growth expectation was also slashed by the International Monetary…

Stanbic IBTC Adds Fixed Income Asset into Securities Lending Services Stanbic IBTC Bank Limited announces the extension of its securities lending services to include fixed-income securities. This significant development marks a new milestone in the Nigerian capital market, providing clients with enhanced opportunities for income generation and increased market liquidity. With this development, institutional clients, both local and international, can now borrow and lend not just equities but also fixed-income securities such as Federal Government Bonds and Treasury Bills, offering them greater flexibility and diversified investment options. Babatunde Majiyagbe, Head, Investor Services at Stanbic IBTC Bank Limited, highlighted the importance…

With rising appetite for the naira asset, the average yield on Nigerian Treasury bills plunged slightly in the secondary market ahead of the Central Bank of Nigeria’s (CBN) open market operation (OMO) auction schedule for midweek.

The Nigerian local currency, the naira, experienced a slight gain against the US dollar in the official FX market on Tuesday as Nigeria recorded additional foreign currency inflows into external reserves.

The average yield on Nigerian Treasury bills declined slightly to 23% in the secondary market as inflation rate accelerated further. The latest data from the statistics office showed that the consumer price index rose 24 basis points to 34.19% in June, the level seen 28 years ago.

The naira underperformed expectations, depreciated further against the US dollar in the official currency market on Monday after FX sales to authorised dealers last week. Some analysts projected that the exchange rate would start to recalibrate after the apex bank recommenced FX intervention sales in the official window last week.