COVID-19: Evaluating CBN’s intervention

Central Bank of Nigeria

Nigeria recorded its COVID -19 index case on February 27, 2020. Between then and now, the pandemic has wreaked havoc on the economy. To cushion the effect, the Central Bank of Nigeria (CBN) rose to the challenge, feeding the system with adequate liquidity under various interventions. Abdulwahab Isa reports     The Coronavirus pandemic ambushed the world economy in an unprecedented manner.  It caught both developed and developing nations, leaving financial experts, economists and healthcare experts scrambling for solutions. The dip in price of world’s number one commodity, crude oil,…

Read More

CBN: Striving to avoid COVID-19-induced recession

cbn, Central Bank of Nigeria

The surprise Monetary Policy  Rate (MPR) cut announced by the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC)  last Thursday is part of the apex bank’s efforts to ensure that monetary and fiscal policy align to help the economy avoid the widely anticipated Coronavirus-induced recession, writes Tony Chukwunyem     Prior to last Thursday’s meeting of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee, the consensus among analysts was that  growth concerns  occasioned by the coronavirus (Covid-19)  and worries over rising  inflation,  were likely to make the  committee…

Read More

CBN reschedules May MPC meeting to Thursday, May 28

Central Bank of Nigeria

Citing the declaration of Monday and Tuesday, May 25 and 26, 2020, as Eid-el Fitr holidays, the Central Bank of Nigeria (CBN) yesterday announced that it has shifted its May Monetary Policy Committee (MPC) meeting to Thursday, May 28, 2020. The meeting was originally scheduled for May 25 and 26. In a press release signed by its Director, Corporate Communications Department, Mr. Isaac Okorafor, the apex bank said that it had put in place all necessary arrangements to ensure that the meeting holds for only one day due to on-going…

Read More

‘CBN should increase yuan composition of forex reserves’

Central Bank of Nigeria

As part of efforts to tackle the current pressure on naira, the Central Bank of Nigeria (CBN) should gradually increase the yuan (renminbi) composition of its foreign exchange reserves, analysts at Vetiva Research have said. The analysts made this recommendation in a report obtained by New Telegraph yesterday. According to the analysts, the CBN’s recent adjustment of naira’s official price may not be enough to stave off further pressure on the local currency due to slump in oil prices and the massive negative impact this has on the forex reserves.…

Read More

CBN’s N50bn loan: Strategic for agic sector post-COVID-19

Central Bank of Nigeria

The decision by the Central Bank of Nigeria (CBN) to introduce intervention loan applications for the N50 billion credit facility for households and agro-allied micro, small and medium sized enterprises hit by COVID-19 outbreak looks perfect to re-jig the ailing economy post-Covid-19. Taiwo Hassan reports     With the on-going disbursement of the N50 billion targeted credit facility for households and agro-allied micro, small and medium-sized in the country by the apex bank, there is no gainsaying that it will go a long way in cushioning the impact of the…

Read More

Report: CBN weakens naira on derivatives market

Central Bank of Nigeria

Five-year naira futures slid past N550 to the dollar yesterday after the Central Bank of Nigeria (CBN) weakened the naira on the derivatives market, Reuters reported traders as saying. According to the news agency, the CBN’s move indicates that the local currency is likely to come under more pressure in the days ahead. Traders said the apex bank softened the naira on average by  N73  across tenors,  with the one-year maturity revised by N27, adding that the 5-year naira futures, introduced in February, weakened to N569 per dollar, from  N413…

Read More

COVID-19 highlights gains of CBN’s intervention programmes

Given how the coronavirus outbreak has negatively impacted food supply chains around the world, perhaps, Nigeria, by now, like many import-dependent countries, would have been grappling with the challenge of feeding its over 200 million citizens, if not for the Central Bank of Nigeria (CBN)’s intervention programmes in the agricultural and manufacturing sectors writes, TONY CHUKWUNYEM     Reports of how the Coronavirus outbreak, especially lockdown measures announced by governments, is disrupting the supply chains and disrupting operations around the world continue to dominate headlines. Indeed, in his recent and…

Read More

Contributions to COVID-19 Relief Fund hit N25.9bn –CBN

Central Bank of Nigeria

Monetary contributions to the account set up at the Central Bank of Nigeria (CBN) under the Private Sector Coalition Against COVID-19 increased to N25.9 billion as at April 17, the apex bank has said. A statement issued on behalf of the coalition by the Director, corporate communications, CBN, Isaac Okorafor, yesterday listed 107 donors,including individuals, banks and other corporates. Okorafor’s statement reads: “The coalition hereby conveys its gratitude to all the institutions and individuals that have generously donated to this fund. “We urge others to consider contributing to this national…

Read More

Capital outflows: CBN turns supplier at I&E fx window

Central Bank of Nigeria

  Following increasing capital outflows, the Central Bank of Nigeria (CBN) has in recent weeks turned from being a consistent buyer to a supplier at the Investors’ and Exporters’ (I&E) foreign exchange window, FBNQuest Research has said. In a report obtained by New Telegraph at the weekend, the firm noted that: “For nine of the 10 latest weeks for which the (I&E) data is available (through to 24 to 28 September), it (CBN) has been the largest source of such inflows.” The apex bank established the I&E forex window in…

Read More

CBN proposes N5bn capital requirement for PS Banks

Central Bank of Nigeria

Emefiele: We may cut $8.1bn claim on MTN Banking agents, Mobile Money Operators (MMOs), Retail chains (Supermarkets), Telecommunications companies (Telcos), which through their subsidiaries, desire to convert to Payment Service Banks (PSBs) should have a minimum capital requirement of N5 billion, the Central Bank of Nigeria (CBN) has proposed.The apex bank is also proposing that entities applying for a PSB license should pay a non-refundable application fee of N500,000 as well as a non-refundable licensing fee of N2 million These proposals are contained in the exposure draft on the guidelines…

Read More