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External reserves drop by $180m in two weeks

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External reserves drop by $180m in two weeks

The country’s external reserves lost $180m in two weeks, the latest figures obtained from the Central Bank of Nigeria showed on Sunday.

According to the figures, the reserves, which stood at $33.28bn on July 1, dropped to $33.09bn as of July 12 before gaining slightly to rise to $33.1bn on July 15.

The reserves lost $905.5m in June, after it fell to $33.32bn at the end of June 30 from $34.23bn on May 31. The reserves stood at $34.88bn at the end of April 30, according to the CBN.

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The CBN report at the end of the MPC meeting showed that the share of fossil fuels was set to decline from the current 85 per cent of total primary energy demand in 2018 to between 20 and 65 per cent by 2050.

It said as such, crude oil demand was forecast to decline, led by the evolution of electric, hydrogen and biofuel-powered means of transport.

It stressed the need to diversify the Nigerian economy.

It said in addition to adopting new technologies that supported the agenda of the green economy, Nigeria’s developmental objectives should also focus on encouraging non-oil export promotion to improve the country’s trade balance and increase the accretion to external reserves.

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Finance

CBN to Refund Capital Deposits, Licensing Fees to BDC Promoters

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CBN to Refund Capital Deposits, Licensing Fees to BDC Promoters

The Central Bank of Nigeria (CBN) says it will commence the immediate refund of capital deposits and licensing fees to promoters who have pending Bureaux de Change (BDC) licence applications.

This was disclosed in a circular on Thursday, signed by Ibrahim Tukur, for director, financial policy and regulation department.

The CBN advised the affected BDC Promoters to forward their requests for the refund in writing to the director, financial policy and regulation department, CBN Abuja.

It further mandated all Deposit Money Banks (DMBs) to stop accepting instructions from customers to transfer a capital deposit of N35 million to the designated CBN account for the purpose of applying for BDC licences.

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Also, as part of efforts to ensure citizens have access to foreign exchange, the CBN has directed DMBs to set up teller points in designated branches for the sale of Foreign Exchange (forex) to Nigerians. Furthermore, DMBs are required to establish electronic application and alert systems to update customers on the status of their Forex requests.

The directive follows the decision by the CBN to discontinue dollar sales to the Bureau De Change over trading FX wholesale in contravention of their licences, and Nigeria’s FX regulations.

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Finance

Global Economy to grow by 6%, Nigeria at 2.5% – IMF

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Global Economy to grow by 6%, Nigeria at 2.5% – IMF

The International Monetary Fund retained its growth outlook for both Nigeria and the global economy for the year 2021, stating that the global economy is projected to grow 6.0 percent in 2021 and 4.9 percent in 2022, while Nigeria’s growth outlook has been maintained at 2.5% for the period.

The IMF disclosed this on Tuesday in its World Economic Outlook (WEO) for July titled “Fault Lines Widen in the Global Recovery.”

Prospects for emerging market and developing economies have been marked down for 2021, especially for Emerging Asia.
By contrast, the forecast for advanced economies is revised up,” it said.

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They also stated that “better global cooperation on vaccines could help prevent renewed waves of infection and the emergence of new variants, end the health crisis sooner than assumed, and allow for faster normalization of activity, particularly among emerging market and developing economies.

Moreover, a sooner-than-anticipated end to the health crisis could lead to a faster than-expected release of excess savings by households, higher confidence and more front-loaded investment spending by firms.”

For 2022, IMF says it forecasts Nigeria’s economy to grow by 2.6% and South Africa’s by 2.2%.

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Finance

IMF Retains Nigeria’s Growth Prospect at 2.5% Amid Slow Vaccinations

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IMF: Reinstatement of Fuel Subsidy Worries IMF

The International Monetary Fund (IMF)I in its July World Economic Outlook (WEO) Update released on Monday, has retained its projection for Nigeria’s economic growth prospect for this year at 2.5 per cent.

Nigeria’s projection is 0.9 percentage points lower than sub-Saharan Africa’s estimated growth of 3.4 percent. It is also far less than the six per cent global average growth estimate.

In the new document, the global institution marked down growth prospects of low-income developing countries (LIDCs) by 0.4 percentage points, citing slow rollout of vaccines as the main factor weighing on the recovery.

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“The overall fiscal deficit in 2021 was revised up by 0.3 percentage points from the April 2021 WEO, mainly because of the re-emergence of fuel subsidies as well as the additional COVID-19 and security-related support in Nigeria’’, it stated.

Still, at 5.2 per cent of gross domestic product (GDP), the overall fiscal deficit remains well below that of advanced and emerging market economies, reflecting financing constraints, adding that about 60 percent of LIDCs are assessed to be at high risk of or in debt distress,” the Fund said of Nigeria.

The IMF also estimated the country’s public debt-to-GDP ratio, which is currently at about 35 per cent, for 2021 at 48.5 per cent.

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External reserves drop by $180m in two weeks

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