Business

Naira crashes again, goes for N502/$1 on parallel market

Published

3 years ago

June 5, 2021

The naira on Friday exchanged at N502 to one dollar on the parallel market due to what finance experts termed pressure from panic buyers on the local currency.

The naira lost N3/$1 when compared with N499 to dollar it closed on Thursday.

Managing Director/CEO Financial Derivatives Company Limited, Bismarck Rewane, said the naira was weakening because of panic buying by forex users, speculative trading and front loading of future demand.

He said, “Our economic analysis based on the cobweb theorem of prices (exchange rate) moving towards an equilibrium says that prices will rise initially when there is a demand gap before falling in the short run.

“Therefore, we expect the forex market to correct itself in July with the naira appreciating towards N470-N490/$.”

The naira has been under pressure after its recent devaluation by the Central Bank of Nigeria that pegged the official exchange rate at N410.25/$.

Many forex dealers expressed shock at the pace the naira was losing ground against the dollar despite rise in crude oil prices.

Trading Desk Manager, AZA, a global forex trading platform, Murega Mungai, told investors that the market had continued to digest the impact of the CBN adopting the NAFEX as its official exchange rate.

He said that foreign reserves also declined slightly to $34.24bn, repressing a 0.04 per cent decrease compared to the previous week figure.

Mungai said the recent rise in global crude oil prices had not fed through into increased revenue from oil exports while projecting sustained pressure on the naira in the coming days.

President, Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, said forex speculators were behind the naira fall.

He said directors of Bureaux De Change (BDCs) had met and resolved that all BDCs should cooperate to bring down the forex rates in the market.

Business

PH refinery: 200 trucks will load petroleum products daily, says Presidency

Published

15 hours ago

November 26, 2024

Trends Admin

Port Harcourt Refinery

PH refinery: 200 trucks will load petroleum products daily, says Presidency

No fewer than 200 trucks are set to load petroleum products at the government-owned Port Harcourt Refinery, the presidency has said.

A presidential spokesperson, Sunday Dare, made this known in a statement through his official X handle on Tuesday.

Newstrends had reported that the Nigerian National Petroleum Company on Tuesday announced that Port Harcourt Refinery has resumed operations and crude oil processing after years of inactivity.

PH refinery: 200 trucks will load petroleum products daily, says Presidency

Business

Breaking: CBN increases interest rate to 27.50%

Published

16 hours ago

November 26, 2024

Trends Admin

Breaking: CBN increases interest rate to 27.50%

The Central Bank of Nigeria (CBN) has raised the lending interest to 27.50 per cent from 27.25 per cent.

This latest increase in the Monetary Policy Rate came after a meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Monday and concluded Tuesday.

The Monetary Policy Rate measures the benchmark interest rate.

The CBN Governor, Yemi Cardoso, announced this in Abuja on Tuesday after the MPC meeting, last for the year, held at the apex bank’s headquarters.

He said the MPC voted unanimously to raise the MPR by 25 basis points from 27.25% to 27.50%; and retain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks.

The CBN governor also said the MPC retained the Liquidity Ratio (LR) at 30% and Asymmetric Corridor at +500/-100 basis points around the MPR.

Business

Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS

Published

20 hours ago

November 26, 2024

Trends Admin

Nigeria’s unemployment rate dropped to 4.3% in Q2 – NBS

Nigeria’s unemployment rate stood at 4.3 per cent in the second quarter of 2024, the National Bureau of Statistics (NBS) has said in its latest report.

The report released on Monday said the unemployment rate decreased compared to the 5.3 per cent recorded in the Q1 of 2024.

The NBS defined the unemployment rate as the share of the labour force (the combination of unemployed and employed people) who are not employed but actively searching and are available for work.

“The unemployment rate for Q2 2024 was 4.3%, showing an increase of 0.1 percentage point compared to the same period last year,” the report stated.

“The unemployment rate among males was 3.4% and 5.1% among females.

“By place of residence, the unemployment rate was 5.2% in urban areas and 2.8% in rural areas. Youth unemployment rate was 6.5% in Q2 2024, showing a decrease from 8.4% in Q1 2024.”

Report also said the unemployment rate among persons with post-secondary education was 4.8 per cent; 8.5 per cent among those with upper secondary education, 5.8 per cent for those with lower secondary education, and 2.8 per cent among those with primary education in Q2 2024.

Employment rate – 76%

The report showed that the employment-to-population ratio, which measures the number of employed workers against the total working-age population, increased to 76.1 per cent in Q2 2024.

“In Q2 2024, 76.1% of Nigeria’s working-age population was employed, up from 73.1% in Q1 2024,” the report stated.

Self-employment – 85.6%

The report further showed that Nigeria’s labour market saw a notable shift as the proportion of self-employed individuals increased in Q2 2024.

It stated, “The proportion of persons in self-employment in Q2 2024 was 85.6%.”