Business
Yen Slumps to Lowest in Four Years on BOJ Easing
TOKYO – The yen fell to a four-year low against the euro and weakened past 101 per dollar as Japan’s central bank kept its pledge to expand the monetary base as part of the government’s strategy to end 15 years of deflation.
The euro gained for a second week as a rise in German business confidence fueled optimism the economic recovery is gaining momentum. Australia’s dollar fell on bets the central bank will intervene to weaken the currency. Yields on U.S. debt rose to the highest in two months relative to Japan’s as the Federal Reserve signaled reduced asset purchases “in coming months.” U.S. consumer confidence is forecast to climb in November after plunging last month amid the government shutdown.
“The yen was among the under-performers in the Group of 10 this week,” Valentin Marinov, head of European G-10 currency strategy at Citigroup Inc. in London, said in an e-mail. “The dollar could remain supported against the yen from the upcoming U.S. data, as well as more signals from the Fed about the timing of tapering.”
The yen fell 1.5 percent this week to 137.28 per euro after touching 137.35, the weakest level since October 2009. The Japanese currency slipped 1.1 percent to 101.27 per dollar after reaching 101.35, the least since July 8. The shared currency rose 0.5 percent to $1.3558.
The Bloomberg U.S. Dollar Index, which tracks the currency against 10 major counterparts, rose 0.2 percent to 1,018.56.
Winners, Losers
Brazil’s real rallied the most against the greenback among its 16 most-traded currencies tracked by Bloomberg as companies made winning bids worth $9.1 billion to operate two of the nation’s busiest airports, more than three times the minimum amounts set by the government.
The real climbed 1.5 percent over the past five days to 2.2794 per U.S. dollar, its first weekly advance since Oct. 18.
The Aussie fell for a fifth week against the dollar, the longest losing streak in more than five months, after Reserve Bank of Australia Governor Glenn Stevens said in a speech on Nov. 21 that foreign-exchange intervention can be effective as long as it’s “judiciously used in the right circumstances.”
“The Aussie is looking very vulnerable,” said Ian Stannard, head of European foreign-exchange strategy at Morgan Stanley in London. “The RBA has once again focused in on the currency, citing it as overvalued. There are domestic and international reasons to be negative and we are looking for the move to continue.”
The Aussie fell 2 percent to 91.83 U.S. cents this week after touching 91.44 yesterday, the weakest since Sept. 6. The currency traded touched NZ$1.1170, the lowest versus the New Zealand dollar since October 2008.
Argentine Peso
The Argentine peso, which is regulated by the nation’s central bank, fell the most among emerging-market currencies in the last five days amid cabinet changes that included the central bank president and economy minister.
The likelihood Argentina will designate exchange rates that differ based on the transaction has jumped with the promotion of Axel Kicillof, who as deputy economy minister supported President Cristina Fernandez de Kirchner’s ban on dollar purchases for savings and import restrictions, according to HSBC Holdings Plc.
The peso slumped 1.5 percent to 6.0827 per dollar, the biggest weekly drop since March 2009. In a market used to wager on future currency values, peso non-deliverable forwards tumbled 4.7 percent to 7.1300.
Central Banks
Minutes of the Fed’s Oct. 29-30 meeting showed policy makers “generally expected” improvement in employment data that would “warrant trimming the pace of purchases in coming months.” The central bank buys $85 billion of Treasuries and mortgage-backed securities a month. The Fed next meets on Dec. 17-18.
U.S. consumer confidence rose to 72.2 this month, according to the median estimate of 58 economists in a Bloomberg survey, from 71.2 in October, the weakest reading in six months. The partial closure of federal agencies for half the month pushed consumer expectations to a seven-month low.
Japan’s central bank kept its pledge to expand the monetary base by as much as 70 trillion yen ($69 billion) a year at its Nov. 21 meeting. Nineteen of 37 economists surveyed by Bloomberg said policy makers will add stimulus in the second quarter of 2014 after a planned increase in sales tax, with seven saying it will ease in the July-September period.
‘Key Driver’
The extra yield that U.S. 10-year Treasuries offer over similar-maturity Japanese bonds expanded to 2.19 percentage points on Nov. 20, the widest level since Sept. 12 based on closing prices. It was at 2.12 percent today.
“The yield differential is a key driver of dollar-yen,” Brian Daingerfield, a Stamford, Connecticut-based currency strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit, said in a phone interview. “The dollar, reacting positively towards the possibility of an earlier taper and yields moving higher, is pushing dollar-yen higher.”
Futures traders increased their bets that the yen will decline against the dollar to the most since July 2007, figures from the Washington-based Commodity Futures Trading Commission show.
The difference in the number of wagers by hedge funds and other large speculators on a decline in the yen compared with those on a gain so-called net shorts was 112,216 on Nov. 19, compared with net shorts of 95,107 a week earlier.
German Confidence
The Ifo institute’s German business climate index, based on a survey of 7,000 executives, increased to 109.3 from 107.4 in October. That was the highest reading since April 2012. Economists surveyed by Bloomberg forecast a gain to 107.7.
“This should help the euro to go higher,” said Neil Jones, head of European hedge-fund sales at Mizuho Bank Ltd. in London, referring to the German report. “Data continues to encourage, which is indicative of an improving economic trend throughout the euro zone.”
The Bundesbank said this week that the German economy remains on a “solid growth path.” Investor confidence rose to the highest level in four years in November, unemployment remained near a two-decade low in October and factory orders climbed more than economists predicted in September.
The yen has tumbled 13 percent this year, the worst performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar strengthened 3.7 percent and the euro advanced 6.9 percent.
– BLOOMBERG
With Aviation Kerosene (Jet A1) price persistently skyrocketing of late, Nigerian airlines have been forced to prune down their operations.
The airlines claim that the continuous spike in fuel price has pushed operating expenses to unsustainable levels, forcing tough decisions on route frequency and scheduling.
The latest to announce a reduction on flights is Ibom Air.
The airline, on Monday, said it may reduce flight operations to sustain services to its customers and the nation as the jet fuel crisis bites harder.
In a statement by the airline’s Group Manager, Marketing and Communication, Aniekan Essienette, Ibom Air described the worsening fuel price situation as an unprecedented crisis for Nigeria’s domestic operators, revealing that the cost of fueling one of its aircraft has more than tripled between January and today.
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He said: “From an average of N2.1m per flight in January, as of today, the 26th of April, we are paying approximately N7.6m to fuel every flight. This is a more than 350 per cent increase since the beginning of March, a space of just seven weeks! And our aircraft are some of the most fuel efficient in the domestic market.
“At this point, domestic airlines are baffled at why the price of aviation fuel in Nigeria has ballooned to this level, way above the rest of the world, while the fuel marketers obtain 95 per cent or more of their aviation fuel from Dangote Refinery.
The situation is exacerbated by the fact that a combination of competitive pressures and patriotism have prevented a commensurate increase in our fares, meaning that we and our fellow domestic airlines have had to absorb the immense operating losses resulting from this situation.
“We chose to do this believing that the crisis would pass in a week or two, but it has persisted now for nearly two months, continuously increasing, with no reprieve in sight as at today. While we continue to do everything we can to maintain normal operations, it is clear to us that the current conditions are unsustainable,” the airline said.
The airline also called on the fuel marketers to seriously reconsider the pricing of aviation fuel to make the airline business model continue to work in Nigeria.
Recently, Air Peace also announced that it has reduced its Abuja to London flights to three times a week starting from July 1.
The airline said this is due to the current aviation fuel supply which is affecting flight operations nationwide and around the world.
In a statement, it said: “We wish to inform you that our Abuja to London service has been temporarily adjusted to three weekly flights until July 1.
“This measure is necessary to maintain the highest standards of safety and operational reliability during this period, with full operational frequency on our London service scheduled to resume from July 1.
“We recognise that this adjustment may impact your travel plans, and we deeply appreciate your patience and understanding.” In the past few weeks , Nigerian airlines have raised the alarm over the astronomical cost of aviation fuel. Struggling to stay afloat amid a suffocating operating space, they called on the federal government to urgently cushion the heavy losses they suffered following a 300 per cent surge in Jet A1 prices imposed by oil marketers.
The spokesperson of the AON, Prof. Obiora Okonkwo, said in a recent television interview that fuel marketers are to be blamed for what they describe as deliberate price manipulation and artificial scarcity, accusations the marketers have denied.
He added that the spike in the price of Jet A1 fuel cannot be justified and that just a month ago, airline operators were purchasing Jet A1 at below N1,000 per litre, with prices ranging between N950 and N970 but that today, that same litre is being sold at prices ranging from N2,500 to as high as N3,300, an increase of between 150 and 300 percent depending on the location.
One of Nigeria’s domestic refineries, Waltersmith Petroman Oil Limited, has marked a major milestone in the drive for local energy self-sufficiency, with the successful expansion of its refinery’s capacity to 10,000 barrels per day (bpd).
The achievement was highlighted during an official inspection visit by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian Content Development and Monitoring Board (NCDMB) to the company’s Phase 2 facility at Ibigwe, Imo State, at the weekend.
The delegation led by NMDPRA’s Authority Chief Executive, Saidu Mohammed, alongside representatives of the NCDMB, assessed the operational readiness of the upgraded facility. The Phase 2 expansion effectively doubles Waltersmith’s refining capacity from 5,000 to 10,000 bpd, positioning the company as a key contributor to Nigeria’s domestic refining ambitions.
“What WalterSmith has accomplished is no small feat. This is a powerful demonstration that Nigerians have both the capability and responsibility to take charge of the midstream sector which is the true engine room of our economy,” NMDPRA’s Mohammed said.
Besides, the NMDPRA highlighted the company’s compliance with the Petroleum Industry Act (PIA) 2021 and praised its operational standards.
Chairman of Waltersmith, Abdulrazaq Isa, emphasised that the expansion reflects both technical discipline and alignment with national energy policy objectives while maintaining strict adherence to regulatory standards, particularly those set by the NMDPRA.
“We are moving Nigeria beyond an extractive oil economy to one focused on value creation. By refining locally, integrating upstream resources, and building an industrial hub, we are laying a sustainable foundation for long-term economic growth,” Isa said.
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The upgraded facility introduces an expanded product slate, including Premium Motor Spirit (PMS) and Aviation Turbine Kerosene (ATK). These additions are expected to improve supply reliability for Nigeria’s transportation and aviation sectors, while reinforcing the broader goal of transitioning from a crude-export-dependent economy to one focused on value addition.
Regulatory approval is nearing completion, Waltersmith said, with the visit serving as a final assessment ahead of the issuance of a Licence to Operate (LTO) for full commercial operations of Phase 2.
Looking forward, Waltersmith said it plans to expand beyond refining through the development of the Waltersmith Industrial and Innovation Park, a Free Trade Zone (FTZ) anchored by gas-to-power infrastructure.
The initiative, it stressed, aims to attract petrochemical and manufacturing companies, supporting Nigeria’s “Decade of Gas” strategy and fostering long-term industrial growth.
“As we enter this next phase, our continued collaboration with the Authority is critical. We are not just building a refinery; we are building a self-sustaining industrial city that contributes meaningfully to Nigeria’s energy security and regional economic development,” Isa emphasised.
A defining feature of the Waltersmith project, the organisation said, is its partnership with the NCDMB, which holds a 30 per cent equity stake.
NCDMB’s Executive Secretary, Felix Ogbe, represented by the Director of Legal Services, Naboth Onyesoh, said the investment has not only catalysed a scalable refining operation but has also created substantial jobs for Nigerians.
“Our partnership with WalterSmith underscores the power of collaboration in driving local content development. This investment has not only catalysed a scalable refining operation but has also created substantial jobs for Nigerians and strengthened our collective capacity to reduce dependence on imports while improving national living standards,” he stated.
The project, Waltersmith stressed, also has strong financial backing, combining private investment with institutional funding from the Africa Finance Corporation (AFC) and the Bank of Industry (BoI). This blended financing approach, it explained, highlights the viability of public-private partnerships in advancing large-scale energy infrastructure.
President of the Dangote Group, Aliko Dangote, has announced that the expansion of the Dangote Refinery to a production capacity of 1.4 million barrels per day will generate employment for no fewer than 95,000 skilled workers at peak construction.
Dangote disclosed this at the weekend in Lagos during his induction as an Honorary Fellow of the Nigerian Academy of Engineering (NAE), describing the project as a major milestone in Nigeria’s industrial transformation.
According to him, the expansion underscores the Group’s continued commitment to engineering excellence, job creation, and sustainable economic growth.
“This award is particularly meaningful because it recognizes what we are doing in the industry, especially our commitment to employing engineers and skilled professionals. At the peak of construction for this expansion, we expect to have about 95,000 skilled workers on site, and we will continue to grow,” Dangote said.
Upon completion, the expanded Dangote Refinery will surpass the Jamnagar Refinery in India to become the largest refinery in the world, significantly strengthening Nigeria’s refining capacity.
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Dangote noted that the project would rely heavily on Nigerian expertise, creating substantial opportunities for engineers, technicians, artisans, and other skilled professionals. He added that the expansion reflects the Group’s long-term vision for industrialization in Nigeria and across Africa.
Beyond employment generation, the refinery expansion is expected to stimulate local manufacturing, enhance technology transfer, and deepen Nigeria’s oil and gas value chain. It will also improve fuel security, reduce dependence on imported petroleum products, and deliver significant foreign exchange savings for the Nigerian economy.
“The scale of this expansion reflects our confidence in Nigerian capacity and our belief that Africa has the ability to build world-class infrastructure that meets global standards,” Dangote stated.
In his remarks, President of the Nigerian Academy of Engineering, Engr. Prof. Rahamon Bello, described the honour as well deserved, noting that Dangote’s impact transcends physical infrastructure.
“What makes this recognition fitting is not only what has been built, but what has been inspired. Alhaji Aliko Dangote’s journey continues to motivate a new generation of engineers, entrepreneurs, and innovators to think boldly, act decisively, and believe in the immense possibilities within our continent,” Bello said.
Photo Caption
From Left: GED Oil & Gas, Dangote Industries Limited, Fatima Aliko Dangote; GED Operations, Dangote Sugar Refinery Plc, Mariya Aliko Dangote; President/CE, Dangote Industries Limited, Aliko Dangote; President, The Nigerian Academy of Engineering, Engr. Prof. Rahamon Bello, at The Nigerian Academy of Engineering Induction of Aliko Dangote as Honorary Fellow in Lagos on Friday, April 24, 2026.
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