The Central Bank of Nigeria (CBN) recently introduced a new monetary instrument called “Special Bills” into the Nigerian economy. With this tool, the CBN aims to deepen the financial markets while providing itself with an additional liquidity management tool to run the recessing economy.
The apex bank said it would continue to ensure optimal regulation of systemic liquidity and promote efficient financial markets in support of economic recovery and sustained growth.
Below is the Ventures Africa Weekly Economic Index for the week ending 04 December 2020. 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
The NSE All-Share Index and Market Capitalization appreciated by 0.72 percent and 0.75 percent to close the week at 35,137.99 and N18.365 trillion respectively.
However, all other indices finished lower with the exception of NSE Main Board, NSE Insurance, NSE ASeM and NSE Oil/Gas which appreciated by 2.61 percent, 1.56 percent, 0.19 percent and 1.71 percent.
Following the launch of the Growth Board Index on Monday, November 30, 2020, the NSE has announced that it is finalizing the migration process from ASeM. The Growth Board Index will be reflected in the next edition of its report.
Top five price gainers and decliners in the week under review:
Top five price gainers
- Tripple Gee And Company Plc.
- Airtel Africa Plc
- FTN Cocoa Processors Plc
- Cutix Plc.
- AIICO Insurance Plc.
Top five price decliners
- N Nig. Flour Mills Plc.
- Consolidated Hallmark Insurance Plc.
- Royal Exchange Plc.
- Unity Bank Plc.
- Learn Africa Plc.
How did the Naira fare?
Nigeria’s central bank governor, Godwin Emefiele, on January 26 dismissed calls to devalue the naira in his monetary policy committee statement. Instead he chose to continue propping up the currency at 197-199 naira to the dollar and maintain foreign-exchange restrictions. As a result, the naira on the black market is hovering around a record low of 305, fuelling complaints from domestic and foreign businesses who can’t access dollars required for imports. / AFP / PIUS UTOMI EKPEI (Photo credit should read PIUS UTOMI EKPEI/AFP/Getty Images)
The Naira depreciated against the dollar at the close of last week. The exchange rate declined to 382.03 per dollar on the 4th of December, 2020 from 379.80 Naira recorded a week before.
How did the price of oil fare?
Brent oil prices closed out the week on the 27th of November 2020 at $49.25 per barrel, an increase from the N48.18 per barrel recorded a week earlier.
