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Nigeria secures IFC loan to improve currency financing for local companies

Published

2 months ago

October 29, 2024

According to a statement released by the Central Bank of Nigeria on Monday, it has inked a deal with the International Finance Corp to reduce foreign exchange risks and increase local currency funding for Nigerian companies.

The statement shows that the World Bank Group member, IFC, wants to “significantly scale up” its financing in Nigeria, with a goal of over $1 billion over the next several years.

Through the agreement, IFC will be able to boost its investments in Nigerian naira currency and manage currency risks in a variety of sectors, including small and medium-sized businesses, housing, energy, infrastructure, agriculture, and the creative industry.

“Many of these sectors require local currency financing, and IFC’s partnership with the (central bank) is a key tool in expanding access,” the statement said.

Throughout 2024, the naira has experienced persistent devaluation, shedding more than half of its value on the official market since the year began.

The currency was trading at N838.95/$1 in January and broke through the N1,500/$1 barrier in February. Following a short bounce in March, it recovered to N1,300.43/$1 before plunging to a record low of N1,660.5/$1 in October.

The naira began the year at N1215 to the dollar in the parallel market and continued to rise until it first fell to an all-time low of N1,880 in February. After recovering to N1,110 in April, the naira maintained its decline, most recently falling below the N1,700 mark.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

22 hours 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.”