The Central Bank of Nigeria last Tuesday adjusted the official value of the naira to the dollar, as parts of measures to converge the nation’s multiple exchange rates and ensure stability.
Although the CBN did not officially make its position known, data obtained on the website of FMDQ OTC Securities Exchange on the official rate showed a 5.54 percent change from ₦360 per dollar to ₦381 a dollar. More details here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 10th of July 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
Data released by the Nigerian Stock Exchange as of July 10, 2020, showed that the NSE All-Share Index and Market Capitalization both depreciated by 0.12 percent to close the week at 24,306.36 and N12.680 trillion respectively. All other indices finished lower with the exception of NSE CG, NSE Premium, NSE Banking, NSE Pension, NSE-AFR Bank Value, NSE AFR Div Yield, and NSE MERI Value Indices.
Top price gainers and decliners in the week under review:
Top five price gainers
Red Star Express Plc.
PZ Cussons Nigeria Plc.
Sterling Bank Plc.
Cornerstone Insurance Plc.
Zenith Bank Plc.
Top five price decliners
Custodian Investment Plc.
Beta Glass Plc.
MRS Oil Nigeria Plc.
Unilever Nigeria Plc.
Note: The NSE announced an upgrade of its Issuers’ Portal (X-Issuer) on Monday, 06 July 2020. The enhanced X-Issuer comes with a modern layout, improved functionalities, and new user-friendly features to further enhance the compliance and regulation experience of Issuers. Some of the new features include the Release Calendar Module to allow issuers proactively file corporate actions and upcoming meetings, and an information channel for Fund Managers to share information about their funds.
How did the Naira fare?
The Nigerian currency maintained its value against the dollar at the close of last week, trading at ₦387 per dollar, the same exchange rate recorded a week before. The exchange rate at the parallel market fell to another new 3-year low on Friday closing at ₦465/$1, due to pressure on the black market as a result of scarcity of dollars.
How did the price of oil fare?
International benchmark Brent Crude on Friday 10th of July 2020 fell from last week’s price of $43.00, closing at $42.98. The stability in oil price at above $42 a barrel amid the pandemic has been helped by OPEC and its allies reducing crude oil production to its lowest point in nearly 30 years, aided by the over-performance of de facto leader Saudi Arabia.
A report from the International Energy Agency (IEA) this month shows a 108 percent compliance rate on the agreement by major oil producers to limit oil output, against 89 percent a month earlier. Crude oil production of OPEC+ members for June reduced by almost 2 million barrels, compared to the month of May showing 33.4 million barrels per day.