Reserves near $34b mark despite interventions. Naira stable, as CBN sells $481m, threatens sanctions to exporters. Guardian Online
The nation’s foreign exchange reserves’ profiles recorded a new increase near $34 billion mark, after gaining about $350 million in one week, with $200 million being recorded cumulatively in three trading days.
The new level of $33.7 billion was achieved despite twice-weekly interventions that have averaged about $400 million in the last one month, although most of them are 30-day and 60-day futures sales.
The reserves’ accretion has been steady, although slow, since August, from a record of $30.8 billion, riding on the back of relative stability in the international price of crude oil and assessed rebound in foreign investments inflow due to prospects of improving business-friendly policies. Read more
IMF: banks must recapitalise. The Nation Online
Many commercial banks need to raise new capital and boost their capital adequacy ratios for them to drive the desired growth in the economy, the International Monetary Fund (IMF) said at the weekend.
The IMF’s Mission Chief for Nigeria, African Department, Amine Mati, said the commercial lenders needed recapitalisation to secure fresh funds to boost the Federal Government’s chances of achieving the Economic Recovery and Growth Plan (ERGP) target. The ERGP, a Medium Term Plan for 2017 to 2020, is designed to help the Federal Government jumpstart the economy.
Mati spoke at the 2017 Chartered Institute of Bankers of Nigeria (CIBN) Investiture with the theme: Coherent set of policies for greater exchange rate flexibility. Read more