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☆ Nigeria's central bank hikes interest rate to 24.75% as it battles sky-high inflation, currency crisis
▼ + stars: | 2024-03-26 | by ( Elliot Smith | ) www.cnbc.com time to read: +2 min

The Central Bank of Nigeria on Tuesday hiked its key interest rate by 200 basis points, as Africa's largest economy looks to recover from a historic currency crisis and soaring inflation. The CBN announced that its main monetary policy rate would rise to 24.75% from 22.75%, in its second consecutive hike after February's 400 basis point increase. Governor Olayemi Cardoso told a press conference that policymakers believed they need to continue tightening in order to tame runaway inflation, according to Reuters. "That may be a sign that some MPC members are concerned about the impact on growth from tighter monetary policy," he suggested in a note on Tuesday. Capital Economics expects further tightening, given Governor Cardoso's need to bring down the curtain on the country's inflation and currency crises.

Persons: Olayemi Cardoso, David Omojomolo, Cardoso's Organizations: Central Bank of Nigeria, CBN, Reuters, Capital Economics, MPC Locations: Africa

☆ Nigeria battles to halt spiraling currency crisis and rising food insecurity
▼ + stars: | 2024-03-05 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

IBADAN, Nigeria - Feb. 19, 2024: Demonstrators hold placards during a protest against the hike in price and hard living conditions in Ibadan on February 19, 2024. Inflation hit an annual 29.9% in January, driven by soaring food prices that have triggered a cost-of-living crisis in Africa's largest economy. The naira currency, meanwhile, plunged to an all-time low of around 1,600 against the U.S. dollar in late February. "With about 8 percent of Nigerians deemed food insecure, addressing rising food insecurity is the immediate policy priority." IBADAN, Nigeria - Feb. 19, 2024: Demonstrators are seen at a protest against the hike in price and hard living conditions in Ibadan on February 19, 2024.

Persons: Samuel Alabi, Bola Tinubu's, David Omojomolo, Olayemi Cardoso Organizations: Afp, Getty Images, International Monetary Fund, U.S, Bloomberg, Getty, Washington, D.C, IMF, Central Bank of, Capital Economics Locations: IBADAN, Nigeria, Ibadan, Getty Images Nigeria, Africa's, LAGOS, Lagos, Africa

☆ Nigeria naira hits record low near unofficial market rate
▼ + stars: | 2023-12-01 | by ( ) www.reuters.com time to read: 1 min

ABUJA, Dec 1 (Reuters) - Nigeria's naira dropped to a record low against the dollar on Friday on the official market, close to the rate at which it trades on the unofficial parallel market. The currency of Africa's biggest economy fell as low as 1,160 naira to the dollar, LSEG data showed, before recovering to around 800 naira. The naira's official exchange rate has been drifting towards the parallel market level as the central bank is yet to clear outstanding foreign-currency amounts owed in forward deals. Last week, central bank Governor Olayemi Cardoso said he would allow market forces to determine exchange rates while setting clear, transparent and harmonised rules governing market operations. The currency sold at around 1,165 naira on the parallel market on Friday.

Persons: naira, Olayemi Cardoso, Chijioke Ohuocha, Alex Richardson Organizations: Thomson Locations: ABUJA

☆ Nigeria's naira firms on black market, central bank settles FX forwards
▼ + stars: | 2023-11-06 | by ( ) www.reuters.com time to read: +2 min

The naira has hit successive record lows on the black market, where it trades freely, as excess demand on the official market gets funnelled to the unofficial market. The naira crossed the 1,000 naira mark on the black market on Sept. 26, the day newly-appointed central bank governor Olayemi Cardoso appeared before the Nigerian senate for his confirmation hearing. The central bank has not intervened on the official market since October, helping accelerate the naira's slide on the black market. The currency hit a record low of 1,300 naira per dollar on the black market, a month after it crossed the 1,000 naira mark, amid thin trading volumes on the parallel market and dollar shortages on the official market. On the official market, the naira was trading at 884.53 to the dollar at 1200 GMT.

Persons: Afolabi, firmed, Olayemi Cardoso, Cardoso, Wale Edun, Chijioke, Mark Potter Organizations: REUTERS, Rights, Finance, Thomson Locations: Rights ABUJA, Nigeria

☆ Explainer: What is pushing the Nigerian naira to record lows?
▼ + stars: | 2023-10-27 | by ( Chijioke Ohuocha | ) www.reuters.com time to read: +4 min

Investors cheered when Tinubu lifted the currency controls, hoping a unified exchange rate would make it easier to access foreign currency, but that is yet to happen. Banks then repaid foreign credit lines with their own funds when the central bank did not pay out. New central bank governor Yemi Cardoso said clearing the backlog was a priority but he gave no timeline for how long it would take. The country's forex reserves fell to $33.5 billion in September from $37 billion in January, central bank data shows. Banks use their open net positions on foreign currency to finance short-term trade lines without resorting to the central bank for bidding.

Persons: Bola Tinubu, Tinubu, corporates, Banks, Yemi Cardoso, Chijioke Ohuocha, MacDonald Dzirutwe, Hugh Lawson Organizations: JPMorgan, FX, National Economic Council, BANK, Thomson Locations: ABUJA, Nigeria

☆ Nigerian naira hits record black market low -abokiFx
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +1 min

ABUJA, Oct 26 (Reuters) - Nigeria's naira hit a record low of 1,300 per dollar on the black market on Thursday, online platform abokiFX showed, driven by thin trading volumes on the parallel market and dollar shortages on the official market. The naira has been in free fall on the unofficial market, where it trades freely, after currency restrictions were lifted on the official market. Last month, the currency slid past 1,000 naira per dollar on the black market and has continued to weaken. On the official market, the naira recovered to 775 to the dollar from a record low of 999 it touched last week. It kept losing ground, however, on the black market due to thin trading.

Persons: naira, Yemi Cardoso, Wale Edun, Chijioke, Tomasz Janowski Organizations: Finance, Thomson Locations: ABUJA, Nigeria

☆ Nigeria's Tinubu picks banker Cardoso as next central bank governor
▼ + stars: | 2023-09-15 | by ( Felix Onuah | ) www.reuters.com time to read: +2 min

ABUJA, Sept 15 (Reuters) - President Bola Tinubu has nominated the former head of Citibank in Nigeria, Olayemi Cardoso, to serve as the country's new central bank governor, days before its next interest rate meeting, a presidential spokesperson said on Friday. The central bank did not respond to a request for comment on whether Emefiele and his deputy governors had resigned. The central bank raised rates by a smaller-than-expected 25 basis points in July, contrary to analysts' expectations, under acting Governor Folashondun Shonubi, one of Emefiele's deputies. The central bank pursued unorthodox policies under Emefiele who kept the currency artificially strong, a policy backed by former President Muhammadu Buhari, which supported government borrowings on the international markets. He was a former commissioner for economic planning and budget in Lagos state when Tinubu was governor between 1999-2007.

Persons: Bola Tinubu, Olayemi Cardoso, Godwin Emefiele, Tinubu, Cardoso, Ajuri Ngelale, Ngelale, Folashondun Shonubi, Emefiele, Muhammadu Buhari, Camillus Eboh, Chijioke Ohuocha, MacDonald Dzirutwe, Richard Chang, Jane Merriman, Hugh Lawson Organizations: Citibank, Central Bank of Nigeria, Thomson Locations: ABUJA, Nigeria, Lagos

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