20 Jun

Analysis: The impact of the new monetary policy

History will be made today when commercial banks set the first exchange rate of the naira versus the dollar as our currency floats freely. Reuters had late Friday reported that CBN officials told bank chief executives that lenders would set the first naira rate to the dollar based on demand without CBN intervention.

It is worthy to note though, that the CBN did not commit itself to clearing up a backlog of hard currency estimated at around $4 billion, but will intervene

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20 Jun

Daily Watch – Naira floats today, Plateau suspends grazing reserves participation

History will be made today when commercial banks set the first exchange rate of the naira versus the dollar as our currency floats freely. CBN officials told bank chief executives at a meeting on Friday that lenders would set the first naira rate to the dollar based on demand without CBN intervention. The CBN however did not commit itself to clearing up a backlog of hard currency estimated at around $4 billion but will intervene if needed. Bid-offer spreads for

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17 Jun

The week ahead – A light has appeared at the tunnel’s end

The CBN has finally let go of pegs on the naira, allowing the market forces to determine the true value of the local currency against other currencies across the world. Godwin Emefiele, governor of the CBN, said that the bank will operate a single trading window, which will take off on June 20, 2016, adding that the CBN will only step in from time to time regulate the market. Emefiele said the CBN will appoint less than a dozen primary dealers who would now be in charge

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17 Jun

Daily Watch – CBN believes naira will settle at 250 per USD, Five states qualify for FG loan

A report by Reuters says that the CBN is “reasonably optimistic” that the naira will settle at around ₦250 to the US dollar. Quoting a letter from CBN governor, Godwin Emefiele to President Buhari, Reuters noted that the regulator projected an initial period of weakness following the flotation of the naira. The naira is expected to fall sharply when interbank trading begins on Monday, but the CBN said it did not have a target for the currency and the price

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16 Jun

Daily Watch – The naira is finally free, States get tough conditions for bailout

The CBN has finally let go of pegs on the naira, allowing the market forces to determine the true value of the local currency against other currencies across the world. Godwin Emefiele, governor of the CBN, said that the bank will operate a single trading window, which will take off on June 20, 2016, adding that the CBN will only step in from time to time regulate the market. Emefiele said the CBN will appoint less than a dozen primary dealers who would now be

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15 Jun

Daily Watch – Inflation marches on, FG, states, spend less than 2% on agric

The consumer price index, which measures inflation, for May 2016 has risen to its highest point since February 2010. According to the NBS, the inflation rate has worsened consistently since President Buhari took office in May 2015, rising to 15.6 percent in May 2016. Of the 12 months spent so far, inflation has risen every month but one, moving from nine percent in May 2015 to 15.6 percent in May. The Headline index increased by 15.6% (year-on-year), 1.9% points

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14 Jun

Daily Watch – States to receive another bailout, Property market tanks

The FG has commenced plans to bail states out of economic crisis — for the second time since President Muhammadu Buhari took office last year. The ministry of finance, in a statement, said the second bailout will be based on a few conditions that must be met by the states. It stated that to receive the bailouts, states must first fulfil the conditions in the fiscal sustainability plan. Some of the conditions to be met by the states are publishing

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13 Jun

The SBM homemaker’s guide #3 – The squeeze is on

The scope of this report is from March to May 2016. This report shows that the prices of locally produced consumer goods have been rising since January, while the prices of imported goods have also maintained a generally upward trajectory over the same period. Indeed, consumer prices have substantially risen since the last SBM Intelligence food prices report which covered the

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13 Jun

Daily Watch – Buhari approves flexible exchange rate, Fayose kicks against funding of school programme

The naira gained over the dollar following the approval by President Muhammadu Buhari of flexible exchange rate market. Naira firmed by ₦7.50k against the dollar as it closed at ₦368.50k on Friday, representing compared with ₦376/$ the previous day at the parallel market. BusinessDay reported that Buhari gave his approval for the CBN to begin the implementation of flexible exchange rate system, after receiving a memo from the monetary authorities on Wednesday

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10 Jun

The week ahead – Buhari’s health will be a talking point

President Muhammad Buhari on Monday travelled to the United Kingdom to spend a 10 day vacation and also attend to his health. According to his spokesman, the President, is nursing an ear infection and would need to be checked, and treated by his physicians in the UK, on the recommendation of his Nigerian doctors who had treated him and advised him to seek further treatment abroad.

Two thousand Chadian troops have arrived in Niger following the Boko Haram attack on the

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