The president of Nigeria’s Association of Bureaux de Change Operators (ABCON) Aminu Gwadabe has called on re-elected Nigerian president Muhammadu Buhari to lower the currency rate so as to spur the country’s economy. He also set a target of 250 Naira against the dollar for Nigeria’s poor performing currency.
As at Monday, the Naira traded at 361 Naira to the dollar at the Investors and Exporters Window, while it traded at 362 Naira to the dollar at the parallel market. The ABCON president believes a lower exchange rate would strengthen Nigeria’s Naira, encourage foreign investors, and help the flow of remittances.
“A stronger naira will raise Internally Generated Revenues (IGRs), help in the implementation of the restriction of foreign exchange access to 42 items that can produce locally and improve BDCs capabilities to thrive,” Gwadabe said.
However, it remains to be seen if this will be possible for the Nigerian government, as experts believe the Naira’s value could tank even further in 2019, by exchanging at more than 400 Naira to the dollar before the end of the year.
With Nigeria’s forex earnings heavily dependent on oil, and oil prices not predicted to rise above $70 per barrel this year, the Naira’s value against the dollar could be closer to 400 than 250.
Below is the Ventures Africa Weekly Economic Index, for the week ending 1st of March 2019. 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 1st of March 2019, showed that the All-Share Index depreciated by 2.12 percent from the previous week ending 22nd February 2019. Market capitalization at the close of trading during the week under review was N11.829 trillion, a 2.12 percent decrease from N12.126 trillion recorded the previous week. The All Share-Index for the week under review closed at N31,827.24
Top five price gainers and decliners in the week under review:
Top five price gainers
Cornerstone Insurance Plc.
Livestock Feeds Plc.
Veritas Kapital Assurance Plc.
C & I Leasing Plc.
Neimeth International Pharmaceuticals Plc.
Top five price decliners
Transnational Corporation of Nigeria Plc.
NPF Microfinance Bank Plc.
Unilever Nigeria Plc.
Goldlink Insurance Plc.
How did the Naira fare?
The value of the Naira appreciated against the dollar, with the Naira ending the week at 361NGN against the dollar on the 1st of March 2019, a Naira less than the 362NGN recorded the week before.
How did the price of oil fare
Brent oil prices finished the week at $63.15 per barrel on the 1st of March 2019, representing a decrease from $66.04 recorded a week earlier. OPEC output fell to its lowest in four years last week. However, oil prices have risen again today, owing to talks of a new trade deal between the US and China after their tariff war.