Central Bank of Nigeria
IN view of the weakening foreign capital inflows into the country, the Central Bank of Nigeria is set to meet multinationals in the country to initiate moves towards rebooting of the Nigeria export market.
In a concise tweet on Friday, the CBN said it was ready to encourage the revamp of Nigeria’s export sector through deliberate policies that would boost investment and job creation.
Meanwhile, the total capital imported into Nigeria contracted 78.6 per cent when compared year by year (y/y) and 77.9 per cent quarter on quarter (q/q) to $1.3 billion in the second quarter (Q2:2020), the weakest level since $1.0 billion in Q2:2016, according to the National Bureau of Statistics (NBS).
The sharp decline in Q2:2020 can mainly be attributed to the heightened risks brought by the COVID-19 pandemic which resulted in weak sentiment in emerging markets and foreign capital outflows.
Similar to the case in 2016, the introduction of capital controls, according to experts at Afrinvest (West) Africa Limited, amid foreign exchange (FX) illiquidity has left foreign investors stuck in the market and made Nigeria less attractive as an investment destination.
The wide premium between exchange rates at the parallel market and the I&E window also suggests a mispricing of the currency, which makes investors and businesses reluctant to bring in capital, the analysts stated in a note to clients.
Foreign Portfolio Investment (FPI) moderated 91.1 per cent y/y and q/q to $385.3 million in Q2:2020, the lowest since Q1:2017.
“We attribute the weakness in FPI inflows to Nigeria’s currency crisis which has reduced investors’ participation in the OMO market.
“Going forward, we expect foreign investment to remain weak due to COVID-19 related risks and currency challenges,” the experts said.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
CBN Pegs Exchange Rate At 386/$
Central Bank of Nigeria (CBN) has pegged naira exchange rate at 386 units to the United States dollar as it plans to resume weekly forex sales to Bureau de Change operators from August 31. In a circular signed by O.S. Nnaji, director of trade and exchange department, the apex bank said its decision to resume FX sales to BDCs is to enhance accessibility to forex “particularly to travellers” since the resumption date for international…
Council Of State Pardons Ex-Gov Ambrose Alli, Three Others
The Council of State has ratified the presidential pardon extended to late former Bendel State Governor, Prof. Ambrose Alli and three others. The meeting presided over by President Muhammadu Buhari at the presidential villa, Abuja on Thursday also ratified the pardon granted to Col Moses Effiong, Major E.J Olarenwaju and…
Blasphemy: I Will Not Hesitate To Sign Death Warrant If Yahya Sharif Fails To Appeal, Says Ganduje
Kano State governor, Abdullahi Umar Ganduje, has said he would not hesitate to sign the death warrant passed on Kano-based singer, Yahya Aminu Sharif if he fails to appeal the judgment. This was just as governor Ganduje said the state government has accepted the judgement passed on Sharif and is ready to abide by it. However, the Nigerian constitution gives the right of appeal to Shariff…
Southern Kaduna Crisis: We Won’t Sweep Issues Under Carpet ― Osinbajo
Vice President Yemi Osinbajo has assured that the Federal Government will not sweep the major issues underlying the conflict in Southern Kaduna under the carpet so as to effectively deal with the situation. Speaking, on Thursday, at the ongoing Nigeria Bar Association Annual General Conference during a Special Conversation, he identified the major issues to include “ensuring justice, fixing economic marginalisation and the…
Details Emerge Of How Akinwumi Adesina Got 100% Votes For Second Term As AfDB President
Dr Akinwumi Adesina was on Thursday unanimously endorsed by all the 81-member countries of African Development Bank (AfDB) for another term of five years as the 55th annual meetings of the bank ended in Cote d’Ivoire. A globally-renowned development economist and a World Food Prize Laureate and Sunhak Peace Prize Laureate, Dr Adesina has distinguished himself in driving a bold agenda to reform the Bank and accelerate …
Crypto markets are turning up the volume again, as technical signals, long-range forecasts, and active…
the move for the Apapa central business district agency followed the successes recorded in the…
"We recognise and assert the legitimate rights of the Igbo people to celebrate our national…
A prominent traditional ruler, Oba Ogunyanda Ilufemiloye, the Obalohun of Okoloke town in Yagba West…
In the motion, Karimi passionately urged the Federal Government to direct all relevant security agencies…
The Speaker of the House of Representatives, Hon.Tajudeen Abbas, has urged Nigeria's educational institutions to…
This website uses cookies.