• Home
  • Contact Us
Tuesday, August 9, 2022
  • Login
Rave Online News
  • Home
  • News
    • All
    • World
    Electricity Customers Increase to 10.51m in 2021

    Electricity Customers Increase to 10.51m in 2021

    First Bank Reopens Abuja Headquarters Office

    First Bank Reopens Abuja Headquarters Office

    LIRS Partners Deloitte to Boost Transparency in Tax Administration With Whistle-Blower Initiative

    LIRS Partners Deloitte to Boost Transparency in Tax Administration With Whistle-Blower Initiative

    Elon Musk Shares cryptic Twitter Post About Death

    Tesla CEO, Elon Musk Accuses Twitter of Fraud in Countersuit

    Pan African Digital Rights Bodies Laud Kenya Government’s Decision not to Shut Down the Internet

    Pan African Digital Rights Bodies Laud Kenya Government’s Decision not to Shut Down the Internet

    Facebook Tops Most Restricted Social Media Apps List

    Facebook Tops Most Restricted Social Media Apps List

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Tech
    • All
    • Apps
    • Gadget
    • Startup
    MTN Nigeria Wraps Up 2022 Y’ello Care Initiative, Empowers Nigerians Across 33 States and FCT

    MTN Nigeria Wraps Up 2022 Y’ello Care Initiative, Empowers Nigerians Across 33 States and FCT

    Bluechip Technologies Expands Operation to Europe

    Bluechip Technologies Expands Operation to Europe

    Beware! Hackers Can Unlock, Steal Your Vehicles – NCC Warns Nigerians

    NCC-CSIRT Flags ‘HiddenAds’ Malware that Jeopardizes Users’ Privacy

    Tizeti Expands to Other African Markets, As It Goes Public

    Tizeti Expands to Other African Markets, As It Goes Public

    Olubadan of Ibadan Backs Clamour for Telecom Infrastructure Protection

    Olubadan of Ibadan Backs Clamour for Telecom Infrastructure Protection

    Pantami Reaffirms FG’s Commitment to Indigenous Telecom Content; As Danbatta Lauds Efforts

    Pantami Reaffirms FG’s Commitment to Indigenous Telecom Content; As Danbatta Lauds Efforts

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
  • Entertainment
    • All
    • Movie
    • Music
    Adekunle Wins the Third BBNaija Level Up Head of the House Game

    Adekunle Wins the Third BBNaija Level Up Head of the House Game

    BBNAIJA 7: Christy O, Cyph Evicted As Big Brother Introduces Two New Housemates

    BBNAIJA 7: Christy O, Cyph Evicted As Big Brother Introduces Two New Housemates

    Modella Wins First BBNaija Showmax Task

    Modella Wins First BBNaija Showmax Task

    7 Must-Watch Programmes to Catch up on this Week on GOtv

    7 Must-Watch Programmes to Catch up on this Week on GOtv

    Hermes Becomes Second BBNaija Level Up Head of House

    Hermes Becomes Second BBNaija Level Up Head of House

    MultiChoice Launches New DStv Channel, News Central

    MultiChoice Launches New DStv Channel, News Central

  • Sports
  • Politics
  • Business
No Result
View All Result
  • Home
  • News
    • All
    • World
    Electricity Customers Increase to 10.51m in 2021

    Electricity Customers Increase to 10.51m in 2021

    First Bank Reopens Abuja Headquarters Office

    First Bank Reopens Abuja Headquarters Office

    LIRS Partners Deloitte to Boost Transparency in Tax Administration With Whistle-Blower Initiative

    LIRS Partners Deloitte to Boost Transparency in Tax Administration With Whistle-Blower Initiative

    Elon Musk Shares cryptic Twitter Post About Death

    Tesla CEO, Elon Musk Accuses Twitter of Fraud in Countersuit

    Pan African Digital Rights Bodies Laud Kenya Government’s Decision not to Shut Down the Internet

    Pan African Digital Rights Bodies Laud Kenya Government’s Decision not to Shut Down the Internet

    Facebook Tops Most Restricted Social Media Apps List

    Facebook Tops Most Restricted Social Media Apps List

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Tech
    • All
    • Apps
    • Gadget
    • Startup
    MTN Nigeria Wraps Up 2022 Y’ello Care Initiative, Empowers Nigerians Across 33 States and FCT

    MTN Nigeria Wraps Up 2022 Y’ello Care Initiative, Empowers Nigerians Across 33 States and FCT

    Bluechip Technologies Expands Operation to Europe

    Bluechip Technologies Expands Operation to Europe

    Beware! Hackers Can Unlock, Steal Your Vehicles – NCC Warns Nigerians

    NCC-CSIRT Flags ‘HiddenAds’ Malware that Jeopardizes Users’ Privacy

    Tizeti Expands to Other African Markets, As It Goes Public

    Tizeti Expands to Other African Markets, As It Goes Public

    Olubadan of Ibadan Backs Clamour for Telecom Infrastructure Protection

    Olubadan of Ibadan Backs Clamour for Telecom Infrastructure Protection

    Pantami Reaffirms FG’s Commitment to Indigenous Telecom Content; As Danbatta Lauds Efforts

    Pantami Reaffirms FG’s Commitment to Indigenous Telecom Content; As Danbatta Lauds Efforts

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
  • Entertainment
    • All
    • Movie
    • Music
    Adekunle Wins the Third BBNaija Level Up Head of the House Game

    Adekunle Wins the Third BBNaija Level Up Head of the House Game

    BBNAIJA 7: Christy O, Cyph Evicted As Big Brother Introduces Two New Housemates

    BBNAIJA 7: Christy O, Cyph Evicted As Big Brother Introduces Two New Housemates

    Modella Wins First BBNaija Showmax Task

    Modella Wins First BBNaija Showmax Task

    7 Must-Watch Programmes to Catch up on this Week on GOtv

    7 Must-Watch Programmes to Catch up on this Week on GOtv

    Hermes Becomes Second BBNaija Level Up Head of House

    Hermes Becomes Second BBNaija Level Up Head of House

    MultiChoice Launches New DStv Channel, News Central

    MultiChoice Launches New DStv Channel, News Central

  • Sports
  • Politics
  • Business
No Result
View All Result
Rave Online News
No Result
View All Result
Home E-Financial

Recession, CBN & Naira in Focus

Raveonlinenews by Raveonlinenews
November 23, 2020
in E-Financial
0
Recession, CBN & Naira in Focus
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

By Lukman Otunuga, Senior Research Analyst at FXTM,

Africa’s largest economy has descended into its second recession in less than five years as oil production dropped to a four-year low.

 

Nigeria’s GDP shrank 3.62% in the three months through September from a year earlier, compared with the 6.1% contraction witnessed in the previous quarter. As Oil production fell to 1.67 million barrels a day amid OPEC supply cuts and prices struggled to break away from the sticky $40 level, export earnings evaporated. Although crude contributes to less than 10% of Nigeria’s GDP, it accounts for roughly 90% of foreign-exchange earnings and half of the government revenues. Essentially, the collapse in oil prices in the wake of the pandemic has drained government coffers.

The economic picture remains clouded by external and domestic risks. While Dollar shortages continue to punish the private sector, rising inflationary pressures amid border closures and Covid-19 related disruptions have hit consumers. Although the Central Bank of Nigeria has devalued the Naira by 20% in 2020 in an effort to unify its exchange rates, the Naira could be poised to decline further as falling reserves complicate the Central Bank of Nigeria’s (CBN) efforts in defending the local currency.

All eyes will be on CBN interest rate decision on Tuesday which is expected to conclude with interest rates left unchanged at 11.5%. It will be interesting to see whether the Apex bank enforces any unconventional monetary tools to stimulate economic growth.

In regards to the Naira, it is trading around N484 against the Dollar on the parallel markets. This is its weakest level in more than six weeks as the central bank’s intervention in the official window failed to meet demand.

Outside of Nigeria, global rating agencies Fitch and Moody’s both downgraded South Africa’s sovereign credit rating further into junk on Friday evening.

Moody’s downgraded South Africa’s credit rating one notch to BA2 and maintained a negative outlook, while Fitch downgraded the country’s credit rating from BB to BB- with a negative outlook. Such an unfavourable development comes at a time where the country is dealing with rising government debt exacerbated by negative economic shocks. Given how the credit downgrades will most likely raise the cost of borrowing and constrain the fiscal framework, the outlook remains discouraging. It must be kept in mind that higher borrowing costs may impact social spending or result in higher taxes – developments that may not bode well for Africa’s most industrialised economy.

Outside of Africa, all eyes will remain on the tensions between the Fed and US Treasury, surging coronavirus cases in Europe and the United States, continued delay in the transition of power to President-elect Joe Biden and ongoing US fiscal stalemate.

Related

Tags: Lukman OtunugaSenior Research Analyst at FXTM
Previous Post

Radio Nigeria Kaduna Hosts Danbatta to Discuss Telecoms Industry Issues

Next Post

9PSB Launches Banking Services

Raveonlinenews

Raveonlinenews

Next Post
9PSB Launches Banking Services

9PSB Launches Banking Services

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ad

Recent News

MTN Nigeria Wraps Up 2022 Y’ello Care Initiative, Empowers Nigerians Across 33 States and FCT

MTN Nigeria Wraps Up 2022 Y’ello Care Initiative, Empowers Nigerians Across 33 States and FCT

August 9, 2022
Adekunle Wins the Third BBNaija Level Up Head of the House Game

Adekunle Wins the Third BBNaija Level Up Head of the House Game

August 9, 2022
Zenon Petroleum Asks Court To Wind Up Ardova Plc Over ‘$6m Debt’

Zenon Petroleum Asks Court To Wind Up Ardova Plc Over ‘$6m Debt’

August 9, 2022

Ex-Governors Dariye, Nyame Regain Freedom

August 9, 2022

Popular Posts

  • How MTN is Improving Broadband Penetration in Nigeria

    Five Things to Know About MTN’s Fibre-to-the-Home Service

    0 shares
    Share 0 Tweet 0
  • How SHAREit Lite is Reshaping File Management and Sharing Process on Mobiles for Young Nigerians

    0 shares
    Share 0 Tweet 0
  • MTN Alleges N22Bn Fraud on Mobile Money Banking

    0 shares
    Share 0 Tweet 0
  • MTN Targets Nigerian Businesses with New Premium Wi-Fi

    0 shares
    Share 0 Tweet 0
  • Nadia Buari Unveils Van Vicker as Father of Her Four Daughters

    0 shares
    Share 0 Tweet 0

Browse by Category

Search this site

No Result
View All Result
  • Home
  • Contact Us

© 2022 Rave News - Crafted with ❤️ by Claridan - Adsvance Digitals.

No Result
View All Result
  • Contact Us
  • News
  • Metro
  • Tech
  • Politics
  • Sports
  • Business
  • E-Financial
  • Entertainment

© 2022 Rave News - Crafted with ❤️ by Claridan - Adsvance Digitals.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In