FX Reserves: Still on a knife-edge?

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...
- Advertisement -

Recently, the CBN published Monetary Credit, Foreign Trade and Exchange Guidelines for Fiscal Years 2020-2021. In the guideline, the apex bank expects the FX reserves to fall lower to between $29.9bn and $34.4bn if oil prices remain low. This further raises concern around the value of the naira. Recall that early 2019, the CBN governor highlighted that the trigger point for devaluation are oil prices falling below $45 – 50/ b and the FX gross reserves declining below $30bn.

FX Reserves: Still on a knife-edge?
FX Reserves: Still on a knife-edge? (www.brandspurng.com)

In 2020, the COVID-19 pandemic hastened the actualization of the first condition and oil prices fell well below $40/ b. Expectedly, a price adjustment and a move towards convergence of the exchange rate windows followed suit. Despite the price adjustment, the pressure on the naira persisted. I n a bid to actively manage the foreign reserves (which currently stands at $35.7bn) amid limited inflows, the CBN halted sales of dollars to BDCs (until recently) and intervention in the I&E window.

Besides low crude oil prices, a backlog of FX demand, the expected huge sized OMO maturity and the ensuing foreign capital outflows given the low yield as well as risk-off sentiments of foreign investors, we expect external trade deficit to widen even further. Given all the above, we believe that further price adjustment to the naira might be in the horizon as the CBN continue to struggle to defend the local currency.

HEADLINES YOU MIGHT HAVE MISSED FROM BRAND SPUR

Sony Led the Growing Smartphone Image Sensor Market in H1 2020

- Advertisement -

The global smartphone Image sensor market led by Sony reached a total revenue of $6.3 billion in H1 2020, according to the Strategy Analytics Handset Component Technologies service report, “Smartphone Image Sensor Market Share Q2 2020: Revenue down by 6 per cent as Sony dominates the market.”

Dettol Cool Announces Ighalo As Brand Ambassador

Manchester United forward, Odion Ighalo, has been named as an ambassador of Nigeria’s leading hygiene brand Dettol.

Read Also:  NDE Trains 2,150 Unemployed Youths in Kebbi

TVC Communications Partner with P&G to Commemorate 2020 Child Health Day

- Advertisement -

To commemorate the 2020 Child Health Day, Africa’s foremost media company, TVC Communications; owners of TVC, TVC News, Max FM (Lagos & Abuja) & Adaba FM in partnership with Procter & Gamble recently donated Pampers Baby Diapers to post-natal mothers at Nigeria’s biggest Maternity Hospital in Lagos; Ayinke House Maternity Hospital, Ikeja Lagos, Nigeria.

Market Cap of Three Leading Pharma Companies Jumped by $27bn in 2020, Roche Holding the Biggest Winner

The global pharmaceutical industry has experienced significant growth in the last two decades, with pharma revenues worldwide reaching $1.25trn in 2019. Besides generating huge profits, some of the leading companies responsible for the research, development, production, and distribution of medications also witnessed a substantial market cap growth this year.

Read Also:  NNPC Declares $226 Million Oil Income Decrease In June

COVID-19 disrupting mental health services in most countries, WHO survey

- Advertisement -

The COVID-19 pandemic has disrupted or halted critical mental health services in 93% of countries worldwide while the demand for mental health is increasing, according to a new WHO survey. The survey of 130 countries provides the first global data showing the devastating impact of COVID-19 on access to mental health services and underscores the urgent need for increased funding.

Sony and Xbox Games Strategies Diverge As Cloud Streaming Shapes Future Platforms

The next battle in the 50-year-old games console wars will be shaped by the increasingly contrasting strategies of the two leading players, Sony PlayStation and Microsoft Xbox, according to the latest research from Strategy Analytics.

Dealing With Malnutrition In A Pandemic

Six months ago, the terms COVID-19, pandemic, social distancing, isolation and quarantine made their way into the popular lexicon. Another word that has also gained prominence during this period is malnutrition.

HEINEKEN Spain unveils newest ingredient to brew with 100% green electricity

The sun is the new secret ingredient of Cruzcampo, Amstel and Heineken® beers.

- Advertisement -
FX Reserves: Still on a knife-edge? - Brand SpurFX Reserves: Still on a knife-edge? - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FX Reserves: Still on a knife-edge? - Brand SpurFX Reserves: Still on a knife-edge? - Brand Spur

Latest News

Qatar Airways Touches Down for the First Time in Abuja, Nigeria

The airline will operate three weekly flights from Abuja via Lagos Passengers from Abuja can enjoy more flexible travel options...

Why the South African Rand is 2nd-best performing EM currency

Since the onset of the COVID-19 pandemic, foreign exchange markets experienced a whirlwind of volatility as movement restrictions and a weakened global trade weighed...

Weststar Increases Product Portfolio with Mercedes-Benz Axor

Weststar Associates Limited, Authorized General Distributor of Mercedes-Benz in Nigeria, has announced Mercedes-Benz Axor as its new offering for commercial vehicle fleet owners in...

Ellah Lakes announces a joint venture with Ondo State for the development of Oil Palm and Cassava Plantation

Lagos, November 27, 2020: Ellah Lakes Plc (Ellah Lakes) is happy to announce that it has executed an agreement with Ondo State Government for...

GOtv Nigeria: For the Love of Local Entertainment

In two days, a new cooking and lifestyle show will debut on GOtv, the digital terrestrial television platform from MultiChoice Nigeria. Titled 'Jollof With...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -FX Reserves: Still on a knife-edge? - Brand SpurFX Reserves: Still on a knife-edge? - Brand Spur