Following a currency swap agreement signed between the Central Bank of Nigeria and the People’s Bank of China last month, Nigeria’s apex bank released guidelines last week on how it plans to issue the Remnimbi. CBN plans to start a bi-weekly auction of the Chinese currency to deposit banks and merchant banks.
“The CBN may conduct bi-weekly Renminbi bidding sessions; the Renminbi sales shall be applicable only to trade-backed transactions; importers and Exporters shall continue to pay the applicable levies on imports and exports respectively,” the guideline said.
Although Nigeria-China trade has grown exponentially over the last few decades, the trade relations have remained disproportionately in favour of China. Nigeria has been a perennial importer of Chinese products, thus giving rise to capital flight and the gradual crippling of the Nigerian manufacturing sector. Read the rest of the story here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 8th of June 2018. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE), as of 8th June 2018, showed that the All-Share Index appreciated by 5.03% percent from the previous week ending 1st June 2018. Market capitalization at the close of trading during the week under review was N14.008 trillion, a 5.04% percent increase from N13.336 trillion recorded the previous week. The All Share Index for the week under review closed at 38,669.23
Top five price gainers and decliners in the week under review:
Top five price gainers
Japaul Oil & Maritime Services Plc.
Prestige Assurance Co. Plc.
NASCON Allied Industries Plc.
C & I Leasing Plc.
Dangote Flour Mills.
Top five price decliners
NPF Microfinance Bank Plc.
Consolidated Hallmark Insurance Plc.
First Aluminium Nigeria Plc.
Lasaco Assurance Plc.
How did the Naira fare?
In the week under review, the Naira’s value declined slightly against the Dollar in the parallel market. It was sold at N361/$ on Friday 8th of June 2018, a decrease from the value recorded on the 1st of June 2018.
How did the price of oil fare?
Last week, Brent Oil prices took a slight dip from $76.86 on 1st June 2018 to 76.80 on 8th June 2018, but not before they hit $74 last Tuesday.