• 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 Features

Nigeria set for big rate hike as currency stumbles

1 year ago
in Features, highlights, Home, home-news, latest News
1 min read
0 0
0
50
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Nigeria set for big rate hike as currency stumbles

A sharp slump in the Nigerian naira since mid-April and 28-year high inflation will likely leave the monetary policy committee with little choice but to hike rates again.

Of the 12 economists in a Bloomberg survey nine predict a percentage-point hike, two 200 basis-point increase and one no change when Governor Olayemi Cardoso gives the MPC’s decision on Tuesday in the capital, Abuja. The MPC raised rates by 6 percentage points in the first quarter to 24.75% to rein in inflation and stabilize the currency.

“The committee will likely be watching recent currency volatility and may decide more action is needed,” said Giulia Pellegrin, senior portfolio manager at Allianz Global Investors, which has more €530 billion ($576 billion) under management. “Investors would still like to see some tightening coming out of the next MPC meeting in Nigeria,” she added.

The depreciation of the currency by 28% against the dollar in the past four weeks “means additional and sizeable rate hikes are needed,” said Yvonne Mhango, Bloomberg Africa economist.

The slide is the latest bout of volatility since President Bola Tinubu, who marks his first year in office next week, relaxed foreign-exchange controls in June. The unit has declined around 69% against the greenback since then, fanning inflation that quickened to 33.7% last month — more than triple the 9% ceiling of the central bank’s target range.

“We expect another 200-basis-point increase at the Central Bank of Nigeria’s May 21 meeting, with the focus being on large price gains that are likely to come,” said Mhango. “That follows a similar move in March and will help restore price stability and positive real rates,” she said.

Investors also want Cardoso to announce more liquidity-tightening measures and introduce greater transparency in the currency market, said Ayodeji Dawodu, director of fixed income for Central and Eastern Europe, Middle East and Africa at BancTrust & Co. “I would say transparency and increased intervention in the official market at market driven levels are what are missing from the CBN,” he said.

RelatedPosts

The Global Push for a Just Transition in Energy Jobs

Why the IEA Reinstated Its “Business as Usual” Scenario

GRA Targets Offshore Income in Expanded Tax Compliance Drive

“Unfortunately, there is still some concern on the quality of the reserves, particularly when we saw the sizeable decline in April and there were some vague explanations from the central bank,” he said.

Liquid reserves declined almost 5% last month to $31.38 billion and have recovered slightly to $31.78 billion as of May 16.

Source: bloomberg
Via: norvanreports
Tags: nairaNigeriaNigeria set for big rate hike as currency stumblesrate hike
No Result
View All Result

Highlights

Gold Boom Drives Rising Costs for Australian Producers

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

Premier League: Spurs Stun Man City at Etihad; Arsenal Dominates Leeds to go Top

CHAN 2024: Senegal, Sudan Complete Semifinal Lineup

From Promise to Peril: How Exam Fraud is Eroding Ghana’s Educational Soul

The 10 Fastest-Growing Trading Nations in Africa

Trending

Features

The Global Push for a Just Transition in Energy Jobs

August 24, 2025

The Global Push for a Just Transition in Energy Jobs For years, energy workers from the fossil...

Why the IEA Reinstated Its “Business as Usual” Scenario

August 24, 2025

GRA Targets Offshore Income in Expanded Tax Compliance Drive

August 24, 2025

Gold Boom Drives Rising Costs for Australian Producers

August 24, 2025

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

August 24, 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.