• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Markets set to open positively on Emefiele’s sack, hopes of speedy monetary reform in Nigeria

2 years ago
in Business, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
54
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Markets set to open positively on Emefiele’s sack, hopes of speedy monetary reform in Nigeria

Markets are likely to respond positively to the weekend ouster of Nigeria’s central bank governor, which will allow the country’s new president to better pursue his promise of resetting monetary policy that’s been blamed for crippling Africa’s biggest economy.

Godwin Emefiele was suspended by President Bola Tinubu after financial markets closed on Friday, and detained by Nigeria’s state security service a day later for what were termed “investigative reasons.” Folashodun Shonubi, a deputy governor in charge of operations at the bank, will take over on acting capacity.

Analysts said the outcome should be that Nigerian bonds strengthen and benchmark interest rates may rise as the nation’s assets look more attractive to investors. The scrapping of a multiple exchange rate regime will likely lead to the devaluation of the naira.
“The market will receive the removal of Godwin as a positive development, as his unorthodox policies had become an impediment for Nigeria,” Ronak Gadhia, director of Sub-Saharan banks research at EFG Hermes, said by email. “His removal should be viewed as positive and could lead to increased risk appetite for Nigerian bonds and equities.”

“A more normalized and conventional” policy “should result in higher interest rates in the short term as the CBN attempts to rein in on inflation,” Gadhia added.

Emefiele’s policies — including propping up the naira, restricting foreign exchange for dozens of imports, and focusing on development finance — had long been criticized by investors, economists and institutions like the World Bank. His central bank also lent the government 22.7 trillion naira ($49 billion), helping push the country’s public debt to a record 77 trillion naira.

Emefiele was widely seen as acting in lockstep with the administration of Tinubu’s predecessor, Muhammadu Buhari. The previous government was perceived to be more statist and socialist in its approach, said Yemi Kale, chief economist for Nigeria at KPMG LLP and the nation’s former statistician general. “The markets will respond positively to an administration it believes to be more market oriented,” Kale said.
Tinubu criticized the country’s central bank in his May 29 inaugural address, vowing to unify the multiple exchange rate regime in order to “direct funds away from arbitrage into meaningful investment in the plants, equipment and jobs that power the real economy.”

RelatedPosts

Lewis Hamilton’s Future at Ferrari in Question After Tough Hungarian GP

Transfer DealSheet: Latest on Benjamin Sesko, Nicolas Jackson and More

Gov’t Targets 650,000 Tonnes of Cocoa Production for 2025/26 Crop Season, Eyes 1 Million Tonne Output in the Long-term 

Under Emefiele, Nigeria’s central bank offered the US dollar through several windows at tightly controlled rates with little liquidity to businesses and individuals. This forced many to the black market where the dollar traded more freely but at about a 60% premium to the official rate.

“The departure of Mr Emefiele is likely to be viewed positively by markets as a signal of a new policy direction in Nigeria,” Ayo Salami, chief investment officer at Emerging Markets Investment Management Ltd in London, said via email. “To be credible, the implementation of policy changes would most likely need a new team.”

Naira Devaluation

The current naira exchange rate of 471.92 naira to the dollar, a record low, likely needs to be adjusted to about 700-750 naira, closer to the current black market rate, JP Morgan said in an investment note on May 31. “Our baseline expectation is that an adjustment to these levels is likely, barring significant upside to oil prices or production,” the bank said.
The naira has closed lower for three consecutive days, its longest streak of losses since May 12. Analysts expect that the naira could trade anywhere between 650 to 750 naira to the dollar as Nigeria allows the currency to trade more freely.

A naira at that level, combined with Tinubu’s decision to remove a costly gasoline subsidy, “means the government does not have [to] borrow as much, just to pay interest on debt,” Charlie Robertson, head of strategy at FIM Partners, said in a series of posts on Twitter.

Source: businessdayng
Via: norvanreports
Tags: hopes of speedy monetary reform in NigeriaMarkets set to open positively on Emefiele’s sackmonetary reformsNigeria
No Result
View All Result

Highlights

Shoprite to Exit Ghana and Malawi Sharpening Focus on Core South African Market

Gold Fields Forecasts Total Gold Production of 2.4 Million Ounces for 2025

Gold Fields Projects 236% Rise in H1 Profit on Strong Output and Record Gold Prices

Price, Power, and Policy: A Legal and Economic Examination of the DSTV Pricing Dispute in Ghana

GCB Bank Honoured for Excellence in Project Delivery at 2025 PMEA

Top 10 African Countries With The Highest Borrowing Costs in 2025

Trending

Features

Lewis Hamilton’s Future at Ferrari in Question After Tough Hungarian GP

August 5, 2025

Lewis Hamilton's Future at Ferrari in Question After Tough Hungarian GP Lewis Hamilton's tumultuous start at Ferrari...

Transfer DealSheet: Latest on Benjamin Sesko, Nicolas Jackson and More

August 5, 2025

Gov’t Targets 650,000 Tonnes of Cocoa Production for 2025/26 Crop Season, Eyes 1 Million Tonne Output in the Long-term 

August 5, 2025

Shoprite to Exit Ghana and Malawi Sharpening Focus on Core South African Market

August 5, 2025

Gold Fields Forecasts Total Gold Production of 2.4 Million Ounces for 2025

August 5, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.