- Australia Leaves Cash Rate Unchanged at 1.50%
The Reserve Bank of Australia on Tuesday left the key interest rate unchanged at 1.50 percent following the continued improvement in the global economy.
According to the Central Bank, business and consumer confidence have both picked up in recent months. Even though uncertainties remain, growth is expected above current trend in a number of advanced economies.
However, the apex bank stated that the rapid increase in Chinese borrowing and high spending on infrastructure mean that the medium-term risks to Chinese growth remain. But that the expansion in global economy has contributed to surged in commodity prices, which are providing a significant support to Australia’s national income.
While consumer prices remain low, with growth in labour costs remaining subdued, underlying inflation is likely to stay low for some time.
Indicators have shown the labour market is mixed and in considerable variation with employment data. However, employment rate has been steady at around 5.8 percent throughout the last year. The forward-looking indicators point to continued expansion in employment over the period ahead.
Also, the low-interest rates continued to support economic outlook. While the low foreign exchange rate since 2013 has helped cushion the economy in its transition following the mining investment boom.
The apex bank explained that a higher exchange rate would complicate current progress.
Naira Slides to N475 Against US Dollar on Black Market
Naira Trades at N475 Against US Dollar
Persistent dollar scarcity continues to hurt the value of the Nigerian Naira against its global counterparts across the nation’s forex segments.
The local currency declined to N475 to a US dollar on the parallel market, known as the black market. This represents a N1 decline from the N474 it traded on Thursday.
Against the British Pound, the Naira remained at N600. The same rate it exchanged on Friday. The local currency has lost N20 against the British Pound in the last three weeks amid rising unclear economic path.
The Naira declined by N5 against the Euro common currency to N550, down from N545 it sold on Thursday.
On the Investors and Exporters Forex Window, the local currency improved with the surge in turnover. Naira gained about N3 from N389 it exchanged against the US dollar on the I&E fx window last week to N386 on Friday.
Investors traded $92.22 million on Friday, up from the $18.83 million exchanged on Monday August 3, 2020.
Naira Plunges Against British Pound to N600 on Black Market
Naira Falls by N20 Against British Pound to N600
Economic uncertainties amid low oil prices weighed on the Nigerian Naira against its global counterparts.
The Naira plunged against the British Pound by N20 from N580 it exchanged two weeks ago on the black market to N600 on Thursday and remained at the same rate on Friday morning.
The local currency has remained under pressure since Coronavirus disrupted global economics and demand for global oil earlier in the year. Nigeria, an oil-dependent economy, was one of the nations affected by the low oil prices and disruption of global supply chain and logistics.
This coupled with a series of local challenges like the rising cost of servicing debt to revenue, weak manufacturing sector that depends on importation for most of its raw materials, unclear economic direction that deterred foreign investors and eventually weighed on the nation’s foreign direct investment and capital importation hurt the nation’s economic outlook and investment sentiment.
Against the Euro common currency, the Naira declined by N35 to N545 on Thursday, down from N510 it traded about three weeks ago.
This decline continues against the United States dollar as the local currency traded at N474 to a US dollar, down from N465 it was exchanged three weeks ago.
The inability of the Central Bank of Nigeria to support the local currency through sufficient dollar liquidity continues to impact the manufacturing sector and other key sectors that depend on importation for operations.
Also, the scarcity dictates the Naira exchange rate to its counterparts, especially after a recent report showed foreign investors are looking to access the US dollar to repatriate their funds.
Other factors, like the recent Shoprite announcement that it was pulling out of Nigeria, Africa’s largest economy, due to falling revenue and challenging business environment compounded the nation’s woes.
Naira Declines Slightly on the Black Market to N474/$
Naira Drops Marginally on the Black Market to N474 Against US Dollar
Nigerian Naira declined marginally on Tuesday on the parallel market, popularly known as the black market.
The local currency declined by N1 to N474 per US dollar, down from the N473 it traded on Monday.
This was coming after Shoprite announced it would be exiting Nigeria, Africa’s largest economy. The announcement further damped the nation’s economic outlook amid the already heighten economic uncertainties.
Nigeria continues to struggle with low dollar availability after low oil prices and weak global demand for the commodity eroded the nation’s foreign revenue generation.
On the Investors and Exporters Forex window, the Naira remained pressured at N389 to a US dollar, better than the N389.25 it exchanged on Monday but more than the N381 stipulated by the Central Bank of Nigeria.
Total turnover traded by investors rose from $18.83 million traded on Monday to $24.66 million on Tuesday.
Experts have said the series of bad news emanating from the country will continue to deter potential investors and hurt capital importation necessary to boost dollar liquidity.
News1 month ago
British High Commission to Start Accepting Visa Applications From Nigerians Soon
Business1 month ago
Seplat Appoints Emeka Onwuka as CFO, Executive Director
Finance1 month ago
DSS Arrests EFCC, Acting Chairman, Magu
Forex1 month ago
Naira-USD Exchange Rate to Hit N430 – Report
Business4 weeks ago
Nneka Ede Purchases Portuguese Football Club, Lusitano Ginasio Clube
Business2 months ago
Dangote, MTN Lead Africa’s Most Admired Brands in 2020
Government1 month ago
FG Puts School Resumption Plan on Hold as COVID-19 Cases Hit 30,000
Business1 month ago
West African Consumer Sentiment Reflects Global Uncertainty