Tag Archives: naira
naira: Latest News
Kurt Davis Jr., 8:02 am AFKI Original
The economies of sub-Saharan Africa have felt the pain of 2015 and 2016, and African currencies have experienced volatility as a result. The year 2017 has been a partial year of recovery or adjustment, but there remain a selection of African economies that continue to experience issues with their currencies as a reflection of the problems that are affecting them at home. Here we take a look at four prime examples.
Staff, 1:01 am
Overall, capital importation into Nigeria fell 47 percent in 2016. Foreign direct investment flows were way up but portfolio investments were way down, deterred by the recession and the currency. Nigeria in 2016 imported the bulk of its capital from Britain, the U.S. and Netherlands, with the telecoms, banking and oil sectors the main beneficiaries. Nigeria’s stock market fell 6.2 percent in 2016 while the naira lost a third of its official value against the dollar. In 2017, stocks continue to fall, down 3.1 percent so far.
Kurt Davis Jr., 12:26 pm AFKI Original
Egypt floated its currency earlier this month. The Egyptian pound dropped nearly 50%. Early signs show increased investment in the country. Despite diverging perspectives on the methodology, most economists buy the long-term upside. If the Egyptian story is any indication of success, letting the naira hit rock bottom on a fully-floated basis will result in greater investment in the country and a recovering naira over time. As one local put it, Nigeria should be able to do this (and many other things) better than Egypt. Maybe this is the opportunity to back up such bold statements.
Kevin Mwanza, 6:55 am
Nigerian police arrested several black market currency dealers on Thursday, after the government ordered the intelligence service to crack down on the dealers in efforts to strengthen its struggling local currency, the Naira. The traders have also been ordered not to sell the dollars for more than 395 Naira, as the Central bank raises more concerns over the official and black market rates for the exchange.
Kevin Mwanza, 9:27 am AFKI Original
Nigeria, the second largest economy in Africa, has a population of 167 million people making it the most populous country on the continent. The West African nation is also the second-top producer of oil in Africa, after Angola. It has been in an economic crisis since 2014 and slipped into a recession this year. Below are 10 things to know about the economic recession in Nigeria.
Dana Sanchez, 4:06 am
Some unregistered remittance firms have been detrimental to the Nigerian economy, the government says. They are accused of withholding dollars and paying local beneficiaries with naira. Just three remittance firms — all based in the U.S. — are allowed to continue operating in Nigeria. Nigeria receives more than $20 billion in remittances a year. The move by the central bank is arbitrary, inexplicable and detrimental to the Nigerian diaspora, said the CEO of a suspended firm.
Kevin Mwanza, 6:12 am
Nigeria’s inflation rose for the tenth straight month in June to 16.5 percent, an 11 years high, reflecting higher prices for electricity, transport and food, data from the National Bureau of Statistics showed on Monday. The country, Africa’s largest oil producer, has ironically been facing fuel shortage as retailers struggled to get foreign currency to buy product during a 15-month currency peg that was removed last month
Staff, 7:56 am
The Central Bank of Nigeria said that it would move to a purely market-driven currency system to help Africa’s biggest economy cope with the effects of the global oil price slump in the past couple of years. In the short term, the move is expected to be painful. Long term however, the naira floating freely will likely be a net positive to the country’s economy. Devaluing the naira is a step towards helping to fix Nigeria’s stalling economy, but it won’t solve all its problems.
Kevin Mwanza, 8:02 am
Nigeria’s economy, Africa’s largest, shrunk for the first time in over 12 years as low global oil prices hurt revenue for the the West African nation and affected other key sectors including manufacturing, financials and real estate. The 0.36 percent growth contraction in the first three months of this year, compared to a 2.11 percent rise in the same period last year, has pushed the Nigerian economy closer to recession. The last time the country’s economy shrunk was in 2004.
Staff, 8:32 pm
Any recovery in Nigeria’s currency will have to be supported by higher crude oil prices, an analyst said — like close to $55 a barrel. Famed short seller James Chanos said he’s shorting South African assets, partly because of their exposure to Nigeria. Last week, Nigeria’s stock market rallied after the MSCI Frontier Markets Index decided to keep the country in the benchmark, after warning in April that Nigeria was at risk of being booted from the index. Still, the outlook for Africa’s largest economy remains grim.
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