Nigeria's External Reserves Reach New Heights, But Naira Still Struggles

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Nigeria's External Reserves Reach New Heights, But Naira Still Struggles - Nigeria's external reserves have surged to a 22-month high of $37.31 billion, boosted by foreign inflows from domestic dollar bonds, remittances, and multilateral loans. This marks a 12.99% increase from the start of the year, reflecting the country’s improved foreign currency position. Despite this growth, the naira remains one of the world's worst-performing currencies, depreciating by 49.56% against the dollar over the past year. As of September 18, 2024, the naira traded at N1,539.65 per dollar, down from N776.60 a year earlier. Analysts highlight that while rising reserves empower the Central Bank of Nigeria (CBN) to stabilize the currency, they have yet to translate into naira appreciation. The situation underscores the challenges facing Nigeria's economy, even as external reserves reach their highest levels since November 2022.

MPC May Cut Interest Rates: What to Expect - Analysts predict that Nigeria's Central Bank's Monetary Policy Committee (MPC) may lower the benchmark interest rate, currently at 26.75%, during its two-day meeting starting today. With inflation decreasing for two consecutive months, financial experts argue that a rate cut could support economic growth and job creation.  Notable voices, including Cowry Treasurers' CEO Charles Sanni and economist Richard Mayungbe, emphasize the need to ease borrowing costs. However, some analysts caution that the MPC might maintain rates to monitor inflation trends, which, despite a recent dip, remain high at 32.15%. The MPC's decision will reflect its response to the ongoing economic landscape, especially considering the implications for non-performing loans and industry growth. The meeting will focus on assessing the nation's financial conditions and setting the monetary policy direction.

Capital Market Town Hall Meeting Set for October 7th - ThinkBusiness Africa and the African Business Convention are hosting a special town hall meeting on 7^th of October, 2024 to discuss the future of Nigeria's capital market. The event will feature a keynote address by Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC). Discussions at the conference will explore the challenges and opportunities facing the Nigerian capital market and discuss potential solutions. Click To Register

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