Central bank Nigeria

Nigeria Holds Key Rate at 14% as It Seeks Currency Stability

LAGOS (Capital Markets in Africa) – Nigeria’s central bank left its main lending rate unchanged for a sixth consecutive meeting as it seeks to hold on to gains it’s made in inflation and exchange-rate stability. The Monetary Policy Committee held the key policy rate at 14 percent, Central Bank of Nigeria Governor Godwin Emefiele told reporters on Tuesday in the capital, Abuja. That was in line with the forecast of all but two of 19 economists in a Bloomberg survey. While inflation in…

Weak Naira, Inflation Leave Nigeria Little Room to Cut Rates

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LAGOS (Capital Markets in Africa) – A weak naira and stubborn inflation may prevent Nigeria’s central bank from following South Africa and Ghana in cutting interest rates. Only two of 19 economists in a Bloomberg survey predicted the Monetary Policy Committee will reduce borrowing costs on Tuesday. The rest said the key rate will stay at a record high of 14 percent, where it’s been for a year. Governor Godwin Emefiele, who is scheduled to announce the…

Nigerian Banks Seen Benefiting as Dollars Start to Flow

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LAGOS (Capital Markets in Africa) – An increase in dollar sales by Nigeria’s central bank is giving the country’s lenders reason to cheer. “We see an improvement in the number of letters of credit, bills being settled and remittances being allowed,’’ Segun Ajibola, president of the Chartered Institute of Bankers of Nigeria, said in an interview in Lagos, the nation’s commercial hub, on April 21. “Ordinarily, a margin will always be left behind for banks,…

Nigeria’s inflation slows after fifteen months in February

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LAGOS (Capital Markets in Africa) – Inflation in February accelerated at a slower pace to 17.87% YoY (January: 18.72% YoY; Consensus Estimate: 17.32% YoY), with prices pulling back after fifteen months of consecutive increase. Whilst the rise in food prices remained strong in February at 18.53% YoY, the “All Items Less Farm Produce Index” ( a proxy for core inflation) provided the buffer for the headline CPI, moderating for the third consecutive month to 16.01%…

Analysing the Impact of Nigeria’s Foreign Exchange Regulations

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LAGOS (Capital Markets in Africa) – There have been a few of the adjectives that have been used to describe the recent foreign exchange (‘FX’) policies emanating from the Central Bank of Nigeria (CBN’) over the past 2 years and while opinion remains sharply divided it is clear that debate on these policies have assumed a life of their own. Unquestionably, the main statutory objectives of CBN’s exchange rate policy are to preserve the value…

Nigerian Central Bank Leaves Key Lending Rate Unchanged at 14%

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LAGOS (Capital Markets in Africa) – Nigeria left its policy rate unchanged for a third consecutive meeting to support growth in an economy at its weakest in more than two decades and in which inflation is accelerating. The Monetary Policy Committee held the benchmark interest rate at 14 percent, Governor Godwin Emefiele told reporters from the Abuja-based Central Bank of Nigeria on Tuesday. That was in line with the forecast of all 16 economists in a Bloomberg survey. Nigerian President Muhammadu Buhari proposed…

Nigeria Raises Key Interest Rate to Lure ‘Lukewarm’ Investors in July

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LAGOS, Nigeria, Capital Markets in Africa: Nigeria raised its monetary policy rate to lure foreign investors and prop up its currency, even as the economy risks slipping into recession. The Monetary Policy Committee increased the key lending rate to 14 percent from 12 percent, Central Bank of Nigeria Governor Godwin Emefiele told reporters in the capital, Abuja, on Tuesday. That was in line with the forecast of two of the 15 economists in a Bloomberg survey. Two predicted a 100 basis-point…

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