Business
China inflows slowed by yuan slide
BEIJING – China’s efforts to kick out speculators betting on currency gains are showing early signs of success, with cash flooding into the country slowing sharply and losses accelerating in the yuan, which hit the lowest level in more than 11 months Wednesday.
Foreign money entering China fell to a five-month low of $21.1 billion in February, according to central bank data this week, and compares to $72.3 billion in January.
Analysts say that is a result of Beijing’s moves that begun last month, to send the yuan lower and introduce bigger two-way moves in the currency to deter inflows. So-called “hot money” from abroad is a problem as it inflates asset prices like property, and adds to risks in the banking system.Currency traders are taking cues from the People’s Bank of China, the nation’s central bank, which has continued to fix the daily reference rate for the yuan against the U.S. dollar weaker. On Wednesday the rate was set weaker at 6.1351 per dollar, and in trading the currency fell further to 6.2040, with a higher number meaning a weaker yuan.
For the first time, the yuan traded past its previous 1% band.
The yuan typically trades stronger than the fixing, officially known as the central parity rate, but in recent weeks it has sharply depreciated past the fixing, and losses have accelerated this week.
The offshore yuan, which is also closely watched and traded mainly in Hong Kong, dropped to 6.1989.
The falling yuan is starting to affect markets beyond the currency too. A Chinese department store operator, Maoye International Holdings Ltd. 0848.HK -1.69% , was forced to pull a sale of yuan-denominated debt in Hong Kong on Wednesday, according to a person close to the deal, attributing it to dimmed appetite from investors due to the currency volatility.
One worry too has been financial derivative products that allow companies to profit from yuan-appreciation, but turn sour if the currency drops. The level of 6.20 in the offshore yuan market has been closely watched as analysts say it is where losses could start to grow fast.
“A move of the [offshore yuan] toward or past 6.20 would have major repercussions for the [yuan] market and Chinese businesses,” Dariusz Kowalczyk, a senior economist and strategist at Crédit Agricole, ACA.FR +2.05% said Tuesday. “These structured FX products have been sold by banks to—usually—SMEs in China and Taiwan, with the latter betting on continued [offshore yuan] gains. For most of the structures, banks no longer make payments to corporates at [offshore yuan versus U.S. dollar] levels above 6.15, where we are right now, and clients are exposed to unlimited, leveraged losses north of 6.20.”
But some say sales of these products, which have already opened companies up to mounting losses as the currency has continued to weaken and added to the speculative capital inflows, are falling.
The “slowdown in capital inflows can already be seen in weaker February trade data, as well as the fall in [offshore yuan] structured product sales,” analysts from Nomura said on Wednesday.
Analysts expect the March data for foreign exchange purchases to decrease even further as the companies and investors digest the central bank’s actions and the market’s reactions.
“It was only in late February that the market realized it might not be a temporary correction, it might be relatively prolonged correction and then the slowdown. I think you will see that in the March number,” said Ju Wang, a senior currency strategist at HSBC HSBA.LN -0.95% in Hong Kong.
Ms. Wang said this is a result of investors realizing the Chinese currency will no longer appreciate at the pace it has till now.
– WALLSTREET JOURNAL
Shell will continue to support Nigeria in its efforts to build a secure energy future through investments and efficient delivery of its businesses in Nigeria.
“We continue to invest in Nigeria’s future through our projects, our people, and our enduring confidence in the potential of this nation,” General Manager, Development and Subsurface Shell Nigeria Deepwater, Kun Jiang said today while delivering the sponsor’s remarks at the 49th edition of the Nigeria Annual International Conference and Exhibition of the Society of Petroleum Engineers in Lagos.
Kun highlighted current investments in Bonga North, HI and the advancement of Bonga Southwest as testimonies of Shell’s confidence in Nigeria’s deepwater future. The confidence was further reiterated with the recent launch of a US$3 billion contract financing programme by Shell Nigeria Exploration and Production Company (SNEPCo), which will help Nigerian contractors build capability, create value, and accelerate project delivery.
Shell is a major sponsor of the conference as part of a longstanding support for a professional body which has contributed to the development of the oil and gas industry. Discussing the theme of the conference; “Thriving in the Evolving Global Energy Landscape: Collaborative Growth and Resilience,” Kun said Nigeria had a lot of opportunities despite geopolitical tensions that threaten global supply chains and market volatility and shifting energy dynamics.
“With a population exceeding 240 million people, abundant natural resources, world-class talent, and growing domestic energy needs, Nigeria has all the ingredients to become one of the world’s most attractive energy investment destination,” she pointed out. “But potential alone does not create prosperity. Potential must be converted into progress. Resources must be transformed into value. Opportunity must be matched by action.”
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Nigeria must continue to attract capital, strengthen the business environment, embrace technology to unlock potentials if it will thrive in the global evolving energy landscape. She added: “The future will belong to countries and industries that combine resilience with innovation, ambition with collaboration and investment with execution excellence. Nigeria has the resources. Nigeria has the talent. Nigeria has the opportunity. What is required now is the collective determination to seize it.”
Shell is mounting an exhibition at the SPE conference with SNEPCo’s Senior Production Geologist Abidemi Belgore taking industry leaders and regulators round the stand.
Key areas of interest include technological breakthroughs that have enhanced output at Bonga and facilitated the execution of the Bonga North project. Also highlighted on the stand is the full range of Shell businesses in Nigeria from deepwater oil production and integrated gas to renewables and power solutions as well as social investments across the country.
The Nigerian naira recorded further gains against the United States dollar on Monday, appreciating to N1,408 per dollar in the parallel market, compared to N1,415/$ recorded at the close of trading last weekend.
The local currency also strengthened in the Nigerian Foreign Exchange Market (NFEM), where it appreciated to N1,365 per dollar, up from N1,368/$ at the end of last week.
According to data released by the Central Bank of Nigeria (CBN), the indicative exchange rate improved by N3, reflecting sustained appreciation of the naira in the official market.
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The latest gains also narrowed the gap between the parallel and official exchange rates to N43 per dollar, down from N47 per dollar recorded on Friday, indicating a gradual convergence between both markets.
Meanwhile, activity in the official foreign exchange market increased significantly, with interbank turnover surging by 132.3 per cent to N137.05 million, compared to N58.99 million recorded last weekend.
The improved performance of the naira across both markets comes amid continued efforts by monetary authorities to stabilise the foreign exchange market and enhance liquidity.
With a view to improving operational efficiency, safety, compliance and service delivery across its operations, Pinnacle Oil & Gas Limited has reaffirmed commitment to building stronger relationships with its vendors.
The company made the commitment at its 2026 Vendors’ Forum held in Lagos under the theme, “Partnering for Operational Excellence,” with the sub-theme, “Strengthening Partnerships Through Compliance, Safety, Performance and Innovation.”
The forum brought together more than 100 existing and prospective vendors as well as key stakeholders, both physically and virtually, to strengthen collaboration and align suppliers with the company’s operational standards and growth strategy.
Speaking at the event, Managing Director and Chief Executive Officer of Pinnacle Oil & Gas, Adenike Labinjo, described vendors as strategic partners whose commitment to quality, innovation, safety and compliance is critical to the company’s success.
She said as Pinnacle continues to expand its operations, it has become increasingly important for the company and its vendors to share a common understanding of expectations, responsibilities and performance standards.
Labinjo stressed that safety, regulatory compliance and ethical business practices remain non-negotiable in all engagements with suppliers.
She noted that stronger collaboration with vendors would help the company deliver greater value to customers and other stakeholders while supporting sustainable business growth.
The forum featured technical presentations by senior executives from the company’s Procurement, Engineering, Compliance, Finance, Legal, Health, Safety and Environment (HSE), and Sales and Marketing departments.
Participants received guidance on Pinnacle’s procurement procedures, vendor onboarding and prequalification processes, Know Your Customer (KYC) requirements, tax invoicing, payment processes, contractual obligations, technical specifications, contractor responsibilities, supplier performance expectations and Service Level Agreements.
The company also unveiled improvements to its Purchase Order (PO) process aimed at improving efficiency, transparency and ease of doing business with vendors.
A major highlight of the event was an interactive question-and-answer session where vendors engaged directly with the company’s leadership on procurement procedures, compliance requirements, project execution, HSE standards and areas for continuous improvement.
According to Pinnacle, the session reinforced its commitment to transparency, open communication and stronger collaboration with suppliers.
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The company also recognised outstanding vendors whose contributions have supported its operational performance over the past year. Five companies received Certificates of Recognition for exceptional service delivery, innovation and partnership.
The award recipients were Great Grace Enterprise for Outstanding Delivery Performance, Cevets Nigeria Limited for Excellence in Project Delivery, Ceezik Projekts for Outstanding Quality, Diadco Nigeria Limited for Outstanding Responsiveness, and Sephill Innovative Solutions Limited for Best Commercial Value.
On the significance of the forum, Head of Procurement and Administration, Oluseyi Ogunfowora, said the initiative reflects Pinnacle’s determination to build stronger partnerships through transparency, collaboration and shared accountability.
She explained that the procurement function coordinates the requirements of Engineering, Operations, Marine, Compliance, Legal, Finance, HSE and other business units to ensure a fair, efficient and transparent procurement process.
Ogunfowora urged vendors to submit complete and compliant documentation, communicate proactively and seek clarification whenever necessary.
“The success of our business depends on the strength of our partnerships,” she said. “When vendors clearly understand our expectations and we work together with transparency, compliance and open communication, we create a high-performing vendor ecosystem that benefits everyone.”
She added that the 2026 Vendors’ Forum forms part of Pinnacle’s broader strategy to strengthen supplier engagement, improve operational efficiency and reinforce a culture of compliance, safety, innovation and continuous improvement throughout its value chain.
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