Central Bank of nigeria

Nigerian Central Bank Keeps Key Policy Rate Unchanged at 14%

LAGOS (Capital Markets in Africa) – Nigeria left its benchmark interest rate unchanged for a fourth consecutive meeting to balance lifting the economy out of its worst slump in 25 years with fighting inflation that’s at almost double the government’s target. The Monetary Policy Committee held the key policy rate at 14 percent, Central Bank of Nigeria Governor Godwin Emefiele told reporters in the capital, Abuja, on Tuesday. That was in line with the forecast of all 17 economists surveyed by Bloomberg. While inflation in Africa’s…

Nigerian central bank head urges cooperation on monetary, fiscal policy

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LAGOS (Capital Markets in Africa) – Nigeria’s monetary and fiscal authorities must cooperate on their policies to help Africa’s largest economy to develop, the central bank governor said, according to his spokesman. Central Bank Governor Godwin Emefiele made the comments at a two-day retreat for members of the bank’s Monetary Policy Committee and the ministers for finance, budget, and investment. The closed-door meeting, which takes place about three times a year, ended on Saturday. OPEC…

Nigerian MPC Member Turns on Central Bank over Policy Paradox

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LAGOS (Capital Markets in Africa) – Nigeria is undermining its own efforts to tame inflation and strengthen the naira by “pretending” to tighten policy while boosting the money supply, a member of the Monetary Policy Committee said in an extraordinary attack on the central bank published a day before the first interest-rate decision of the year. While the MPC raised the benchmark interest rate to a record 14 percent last year, the central bank’s management was…

Pre-MPC Note: Blunted Policy Tools Call for Rollback of Administrative Measures

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LAGOS (Capital Markets in Africa) – Next week Monday and Tuesday (21st and 22nd November), the Monetary Policy Committee (MPC) of the CBN will be holding its 6th and last meeting in 2017 to review major developments in the global and domestic space in order to make vital policy decisions. Since the last MPC meeting held in September, the global risk landscape and policy outlook have changed dramatically, underlined by the emergence of Donald Trump…

Central Bank of Nigeria Keeps Benchmark Rate at 13 percent

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Lagos, Nigeria, Capital Markets in Africa — On 22 September 2015, the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting was held where the MPC resolved to reduce the cash reserve requirement (CRR) to 25 percent from 31 percent, retain the monetary policy rate (MPR) at 13 percent, with the symmetric corridor of 200 basis points around the MPR, and retain the liquidity ratio at 30 percent. The MPC decisions were based on…

What expert says: Nigerian naira overvalued or undervalued?

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Johannesburg, South Africa (Capital Markets in Africa) — The interbank rate was seemingly unmoved at USD/NGN197 in 2Q15, masking the intense backlog of US dollar demand. It is difficult to discern whether domestic liquidity conditions have improved since the election. The MPC’s rhetoric regarding the imbalance in the domestic foreign exchange market continues to favour exchange controls to restrict excess US dollar demand. Partial dollarisation and bouts of speculative activity are believed to have aggravated…

Nigerian currency is overvalued says Africa Economist, John Ashbourne

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LONDON (Capital Markets in Africa) — I would say that the currency remains overvalued. Nigeria’s balance of payments position has changed quite radically since the price of oil fell so sharply, and the currency has yet to fully adjust to this. Given low oil prices, relatively high inflation, and generalised dollar strength we would have expected that the naira would have weakened over the course of the second quarter. Indeed, almost every other SSA currency…

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