The Finvest
  • Finance
  • Markets
  • Personal Finance
  • Retirement
  • Debt
  • Forex
  • Cryptocurrency
What's Hot

How does debt relief work?

December 8, 2023

Master Direction part of Initiative for forex market risk management: Das

December 8, 2023

BBVA migrates crypto custody service to Ripple-owned Metaco’s Harmonize

December 8, 2023
Facebook Twitter Instagram
Facebook Twitter Instagram
The Finvest
Subscribe
  • Finance

    Japanese Yen hangs near daily low against USD, focus remains glued to US NFP report

    December 8, 2023

    Ether (ETH) Traders Gaining Favor Over Bitcoin after Latter’s Spike to $44K

    December 6, 2023

    Apple Stock Breaks Out As Key Supplier Raises Sales Outlook

    December 5, 2023

    XRPL Labs Proposes New Atomic Multi-Asset Payments Transactor for Xahau

    December 4, 2023

    Ethereum team lead sees zero interest from university in collaborating

    December 3, 2023
  • Markets

    Japan trade, Q3 GDP, U.S. jobs

    December 8, 2023

    Stocks pop, tech leads as focus fixes on jobs data

    December 7, 2023

    DAX: Germany’s stock market just hit a new record high despite a faltering economy. What gives?

    December 6, 2023

    European markets set to regain positive momentum and rebound at the open – NBC Chicago

    December 6, 2023

    Stock Market News Today: Markets mixed; Treasuries rally after JOLTS report (SP500)

    December 5, 2023
  • Personal Finance

    What’s the average Social Security payment at ages 62, 66 and 71 — and how does your check stack up?

    December 7, 2023

    8 easy money moves to make this year for better finances in 2024

    December 6, 2023

    Utah retirement experts issue critical warning about Social Security

    December 6, 2023

    Money rules for childfree people, according to a CFP

    December 5, 2023

    If You’re Making Just $15 an Hour, You Can Still Grow Financially — Here Are 8 Expert Tips

    December 5, 2023
  • Retirement

    12 Brilliant Money Moves Baby Boomers Are Making in Retirement

    December 8, 2023

    Elon Musk’s figh with Nordic labor intensifies as pension fund dumps Tesla shares

    December 7, 2023

    Alberta government rejects amendments to Canada Pension Plan exit legislation

    December 7, 2023

    What the rush of congressional retirements means

    December 6, 2023

    More Americans are draining retirement accounts to pay bills

    December 6, 2023
  • Debt

    How does debt relief work?

    December 8, 2023

    Chinese developer Shimao trades flat after issuing plan to revamp offshore debt

    December 8, 2023

    How TikTok Drives Gen Z Women Into Debt

    December 7, 2023

    Pennymac to issue $650M in unsecured debt

    December 6, 2023

    DEBT Box urges judge to toss suit as SEC got case ‘badly wrong’

    December 6, 2023
  • Forex

    Master Direction part of Initiative for forex market risk management: Das

    December 8, 2023

    Foreign Exchange Market size to increase by USD 516.48 billion between 2023 to 2028| Increasing market liquidity to drive the market growth

    December 7, 2023

    Travelex launches more than 75 international foreign exchange services

    December 6, 2023

    Myanmar central bank to no longer set forex rates

    December 6, 2023

    FOREX-Dollar steady after key jobs data comes in below estimates

    December 5, 2023
  • Cryptocurrency

    BBVA migrates crypto custody service to Ripple-owned Metaco’s Harmonize

    December 8, 2023

    Robinhood Stock Breaks Out After Surge In Bitcoin, Cryptocurrencies

    December 7, 2023

    Ocean mining pool refutes claims of censoring certain Bitcoin transactions

    December 7, 2023

    U.S. Indexes Finish Lower after Late Reverse

    December 6, 2023

    Bitcoin is up 170% since the ECB called its ‘last gasp’ at $16.4K

    December 6, 2023
The Finvest
Home»Forex»How to address Nigeria’s forex crisis – Agora Policy
Forex

How to address Nigeria’s forex crisis – Agora Policy

finvestadminBy finvestadminAugust 14, 2023No Comments4 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Naira-and-Dollar.jpg
Share
Facebook Twitter LinkedIn Pinterest Email

Agora Policy, a policy think tank based in Abuja, suggests several strategic ways. Central Bank of Nigeria (CBN) Nigeria’s weak foreign exchange market can be tamed as the naira continues to weaken against the dollar across the country’s foreign exchange markets.

The policy think tank said in a new report released on Monday titled “Steady progress in Nigeria’s immature foreign-exchange reforms,” ​​Nigeria is rapidly pumping large amounts of dollars to provide liquidity to its economy. He said he needed to save.

Over the past three months since the exchange rate unification move took effect, the naira has continued to fall on the official market, trading above the benchmark at 780.00 naira from 465.13 naira in mid-May.

Similarly, local currencies hit all-time lows on the parallel market, trading above Naira 930.00 per dollar.

The think tank said in its report that without direct attempts to stop this trend, the temptation to return to the old ways of managing (multiple exchange rates) looks tempting and could blow away current opportunities. said to be sexual.


CBN Headquarters in Abuja
CBN Headquarters in Abuja

The Agora Policy Report said, “Fundamental data show that large imbalances in Nigeria’s external accounts have been caused by a combination of structural changes and policy failures by the CBN, which is the bane of the current currency crisis. It became clear that the existence of

A mere currency adjustment to adapt to reality could lead to temporary gains and then a return to previous practices, he said.

To avoid this cycle, the think tank considers the exchange rate as part of a comprehensive economic plan in which the exchange rate acts as a tool for attracting capital flows that promote export diversification and overall development. He pointed out that monetary policy should be included.

TEXEM Advertising

background

Agora Policy’s intervention comes against the backdrop of new revelations that the Central Bank of Nigeria’s (CBN) securities borrowings from JP Morgan and Goldman Sachs could free-fall Nigeria’s credit rating to junk. there is

In its newly released 2022 financial report, Apex Bank said it had borrowed $7.5 billion by pledging securities from US banks JP Morgan and Goldman Sachs.


Also read: Naira Towards Unified Exchange Rate – Finance Minister


Analysts said the loan deal, which the central bank said was signed “in exchange for securities held as collateral,” could undermine the country’s fragile financial situation and credit rating.

Already amid a growing crisis of confidence in the economy among investors, Nigeria’s 2030 dollar-denominated government bond fell 2.295 cents on Friday to a one-month low of 83.221 cents. Ta.

Our goal

To meet current challenges, the think tank says, policymakers should strike iron while it’s hot by seeking large sources of dollar liquidity on concessional terms to avoid reform fatigue. said it needs to be considered.

He said this could be achieved by considering options for sizable ($5-10 billion) stand-by agreements from multilateral institutions with the aim of gaining credibility.

“Nigeria, which is ahead of schedule in its fiscal consolidation and external sector adjustments, has the credibility to embark on key partnerships to facilitate increased capital flows,” the report said.

Ogi AD

The think tank explained that while this is a tough political issue, desperate times call for bold and desperate measures.

The report said the global geopolitical environment meant that there was a window through which this funding could be obtained if Nigeria were ready to push the boundaries.

“These dollar flows are necessary to give the market a ‘breather’ while remaining unsettled. policy makers may return to the deal,” the report said.

Dangote Advertising Banner 728x90_2 (1)

He said that there are several variations of flexible foreign exchange regimes, so CBN should try to be flexible and be realistic not to rule out any options.

“The goal is to ensure that exchange rate adjustments reflect trends in the balance of payments in the short and medium term,” the think tank said.


Support PREMIUM TIMES journalism with integrity and credibility

Good journalism costs a lot of money. But only good journalism can guarantee the potential for good societies, responsible democracies and transparent governments..

So that we can continue to provide free access to the nation’s best investigative journalism, please consider making a small contribution to this noble endeavor.

By contributing to PREMIUM TIMES, you help keep journalism relevant and help keep journalism free and available to everyone.

to donate





Text Ads: Call Willie – +2348098788999






PT Mag Campaign Ad

Address Agora crisis Forex Nigerias Policy
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleHow to identity fake cryptocurrency
Next Article PGG Wrightson annual profit falls 28% on higher debt costs, weaker real estate market
finvestadmin
  • Website

Related Posts

Master Direction part of Initiative for forex market risk management: Das

December 8, 2023

Foreign Exchange Market size to increase by USD 516.48 billion between 2023 to 2028| Increasing market liquidity to drive the market growth

December 7, 2023

Travelex launches more than 75 international foreign exchange services

December 6, 2023
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Market showing something I’ve never seen

October 25, 2023

Weekly Forex Forecast – EUR/USD, USD/JPY, WTI Crude Oil

September 11, 2023

New Zealand hikes interest rate by 50 basis points in a surprise move; Asia markets mixed

April 5, 2023

Subscribe to Updates

Get the latest sports news from SportsSite about soccer, football and tennis.

At The Finvest, we are passionate about providing our readers with up-to-date and accurate information on the world of finance. Our team of experienced journalists and finance experts works tirelessly to bring you the latest news, insights, and analysis on the global financial markets.

Facebook Twitter Instagram Pinterest YouTube
Top Insights

Zimbabwe Digital Currency | World News

April 28, 2023

Zhenro Properties Makes Progress on Debt Restructuring

November 2, 2023

Zero-waste packaging market to climb to nearly $2.5 billion by 2033

October 15, 2023
Get Informed

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

© 2023 The Finvest. All Rights Reserved
  • About Us
  • Contact Us
  • Advertise With Us
  • Privacy Policy
  • Disclaimer

Type above and press Enter to search. Press Esc to cancel.

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

The Finvest
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.