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Nigerian govt counting on $10bn inflow to ease forex liquidity issues— Finance Minister

Published

1 year ago

October 24, 2023

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has hinted that the country’s economy will receive $10 billion in foreign exchange inflows in the next few weeks.

The inflow, according to the minister during a panel session at the ongoing 29th Nigeria Economic Summit (NES) in Abuja, is aimed at easing liquidity pressure in the foreign exchange market.

He said, “In addition, from the supply of foreign exchange through NNPC, increased production, reduced expenditure, from transactions such as forward sales, from our discussions with sovereign wealth funds, that are ready to invest and provide advance alongside that investment, there is a line of sight of $10 billion worth of foreign exchange in the relatively near future in weeks rather months.”

Edun said President Bola Tinubu had Thursday signed two executive orders allowing the domestic issuance of instruments in foreign currency and allowing all cash outside the banking system to be brought into banks.

“Mr. President announced that he had taken measures to ease illiquidity in the forex market, which we know is very problematic at this time,” Edun said.

“The market is illiquid; it’s not functioning properly because there is no supply, and there are various reasons for that.”

At the same event, CBN Governor Yemi Cardoso disclosed that new rules for the foreign exchange market were currently being developed.

The CBN stated that any discussion on exchange rates in isolation would be undervaluing the narratives, adding that the current struggles of Nigeria’s foreign exchange market were tied to the overall fiscal and macroeconomic landscape.

The Nigerian government has sought to stabilize the country’s economy with two major policy actions: the removal of the fiscal bleeding in petrol subsidies and the unification of the exchange rate. The results have not been positive with the further fall of its currency value and cost of living.

Referencing those two measures, Cardoso said, “Now, happily, we have a situation where the bleeding with respect to Nigeria’s resources has stopped. And I refer specifically to the subsidy, and to be honest, when people say they are concerned, yeah, I get it. But frankly, I think that was the time to be concerned.

“Right now, from what I can see, we are on the path of rebuilding, and that is so important for us on the monetary side. If the fiscal is bleeding, it makes life very difficult for us on the monetary side. So to the extent that that has stopped, it’s a big deal”.

Related Topics:Featured Nigeria Wale Edun

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”