Business
Naira Appreciates By 50 Kobo Despite I&E Turnover Decline
The month of April 2023 saw a sharp decline in the volume of dollars traded in the Investors and Exporters (I&E) window of the foreign exchange market.
According to data published by FMDQ, the I&E turnover fell by 46% month-on-month (MoM) to $1.4 billion, down from $2.6 billion in March. This is in contrast to the 52.9% increase recorded in March when the I&E turnover rose to $1.7 billion from $1.1 billion in February.
A closer look at the weekly analysis of transactions in April reveals that the I&E turnover experienced some fluctuations during the month.
It stood at $411.73 million in the first week of April, fell by 28% to $293.25 million in the second week, rose by 27% to $375.02 in the third week, and finally dropped by 14% to $320.47 million in the fourth week.
Despite the decline in I&E turnover, the naira appreciated in the I&E window, rising by 50 kobo to N463 per dollar on April 28th from N463.5 per dollar traded on April 3rd, 2023.
A similar trend was observed in the parallel market where the naira appreciated by N7 during the review period. Black market traders reported that the exchange rate for the market fell to N740 per dollar on April 28th from N747 per dollar on April 3rd, 2023.
However, the decline in I&E turnover in April may be attributed to the persisting declining trend in the nation’s external reserves, which fell by $246 million to $35.251 billion on April 28th from $35.497 billion at the end of March.
This represents a 4.9% decrease or $1.83 billion since the end of 2022 when it stood at $37.083 billion.
Economists and analysts have projected a further depreciation of the naira in the coming months, citing the depletion of the nation’s foreign reserve and the hike in inflation rate to 17.5% by the Central Bank of Nigeria (CBN) in January.
Financial Derivatives Company (FDC) analysts noted that the CBN’s increased supply of forex to support the naira has resulted in the constant depletion of the external reserves.
He said: “The constant depletion of the external reserves is a result of the CBN’s increased supply of forex to support the naira. Improved measures to fight against oil theft and other insecurity issues in the oil sector are expected to increase external reserves.
“However, high subsidy payments are likely to create a decline in oil earnings. The continuous depletion of the external reserves is likely to limit the CBN’s ability to support the naira. This could lead to further depreciation of the currency.” he added
The Nigerian Economic Summit Group (NESG) has projected that the country has the potential to achieve a 5.5% growth in Gross Domestic Product (GDP) if critical policy reforms are sustained.
This was disclosed on Thursday during the launch of the NESG’s 2025 Macroeconomic Outlook report.
Speaking at the event, the Chief Economist and Director of Research & Development at NESG, Dr. Olusegun Omisakin, highlighted the need for more efficient policy implementation to unlock Nigeria’s economic potential.
READ MORE: Davido Is Richer Than His Billionaire Father – Ibrahim Chatta Claims
“We believe at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential, the GDP to end up at 5.5 per cent, and we believe that this is achievable,” Omisakin stated.
More to follow……….
The Central Bank of Nigeria (CBN) has announced the release of the Nigerian Foreign Exchange (FX) Code, a set of guidelines designed to promote ethical conduct among authorized dealers in the country’s FX market.
In a statement, the apex bank disclosed that the official launch of the Code would take place on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja.
READ MORE: Dangote Denies Culpability In Pumping Up Petrol Price
“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market,” the statement read.
The introduction of the FX Code is expected to enhance transparency, accountability, and professionalism within Nigeria’s foreign exchange ecosystem, aligning it with global best practices.
The event is anticipated to attract key stakeholders in the financial and banking sectors, as well as representatives from authorized FX-dealing institutions across the country.
The 47th President of the United States, Donald Trump attracted up 3 trillion dollars in investments into the country’s economy in his first full day at work.
This was gleaned from the verified handle of the POTUS on micro-blogging site, X, on Wednesday.
Biztellers reports that the POTUS is focused ensuring at least $1 trillion investment daily for the first seven days of his return to the White House, which would be driven by key clearly identified areas, including artificial intelligence.
ALSO READ: WHO Expresses Regret Over US’ Withdrawal
President Trump wrote, “In total, before the end of my first full business day in Washington and the White House, we’ve already secured nearly $3 trillion of new investments in the United States.
“And probably, that’s going to be six or seven by the end of the week.”
In a short video clip accompanying the statement, President Trump assured that the surge in investments would likely hit $7 trillion within his first seven days as the 47th POTUS.
He highlighted that artificial intelligence had proven to be an area lots of willing entrepreneurs had shown much appetite for.
Lawmaker Introduces Bill To Allow Trump A Third Presidential Run
Belgium Appoints Rudi Garcia As National Team Coach
Tinubu Appoints Ganduje, Ajibola, Others As Heads Of Federal Agencies
Bangkok Shuts Over 350 Schools As Air Pollution Reaches Dangerous Levels
Abia Courts Set To Resume As JUSUN Calls Off Strike
Turkish Airlines Resumes Flights To Damascus After 13-Year Hiatus
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
Oando opens ultra-modern petrol station in Lagos
