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Central Bank Interventions Will Stabilise Naira – Pwc - Business - Nairaland

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After $1bn Drop, Nigeria May Suffer Further Decline In FX Inflows – PWC / FG Mulls Redenomination Option To Stabilise Naira / $48b Forex Inflows, $45b Reserves Stabilise Naira (2) (3) (4)

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Central Bank Interventions Will Stabilise Naira – Pwc by Paraman: 7:24am On Jun 26

Professional services firm, PwC, has stated that the interventions by the Central Bank of Nigeria will stabilise the naira in the long run.

That was indicated in its latest Nigeria economic outlook, titled ‘Navigating economic reforms’.

PwC said, “Interventions by CBN may cause the Naira to stabilise in the long-term. However, these interventions may become subdued in the absence of improved capital flows and export proceeds to the foreign reserves.

“Capital importation increased by six per cent to $1.1bn in Q4 2023 from $1.0bn in Q2 2023. The increase was driven by the growth in Foreign Portfolio Investments (189 per cent increase from $106.9m to $309.8m) and Foreign Direct Investments (113.9 per cent increase from $86m to $183.9m) between Q2 and Q4 2023.”

It added that the increase in FPIs was driven by an increase in flows to money market instruments while FDIs were driven by flows to equity investments.

“Capital importation may continue to improve in 2024 due to the policy actions by the CBN aimed at rebuilding investor confidence. Some of the actions implemented by the CBN include settling FX backlogs, increasing MPR to 26.25 per cent to maintain price stability, etc,” the report added.

In May, the Monetary Policy Committee of the CBN raised the benchmark lending rate to 26.25 per cent, citing the need to rein in inflation.

However, a number of the members of the committee also expressed concerns about the illiquidity in the foreign exchange market, which had fuelled volatility in the market.


Inflation, forex shortage worry MPC members
In their statements, the MPC members said there was a need to sustain a tight monetary policy stance to make domestic yields more attractive for domestic and foreign investors.

A member of the committee, Emem Usoro, who voted to raise the MPR by 150 basis points to 26.25 per cent, averred that further tightening of the financial conditions would reduce the negative interest gap and attract more capital inflows to stabilise the naira exchange rate.

She explained, “Sustaining a tight monetary policy stance potentially makes domestic yields more attractive for domestic and foreign investors, supports the naira and accretion to the external reserves. It also helps tame imported inflation, which is crucial given the import-dependent nature of the Nigerian economy.

“Looking forward, the domestic outlook remains cautiously optimistic, as the economy is projected to expand in the near term. This outlook is hinged on fiscal reforms, infrastructural development initiatives, efforts toward continuous deepening of the financial markets through FCY-denominated debt instruments, positive expectations around crude oil prices, increased domestic oil production, and commencement of operations at the Port Harcourt refinery.

“Additionally, a tight monetary policy stance is expected to support this outlook by attracting more capital inflows to improve accretion to reserves. Inflation is, however, expected to remain elevated, but commence moderation in the second half of the year, due to the tight monetary policy, and base effects.”

Meanwhile, the Chartered Institute of Directors has expressed concern over the increasing departure of multinational companies from Nigeria, attributing it to forex issues, inadequate power supply, and inconsistent government policies.

In its ‘Position Paper on the Exodus of Multinationals from Nigeria’ signed by its Director General/Chief Executive Officer, Bamidele Alimi, CIoD suggested ways the government could reverse the trend.

On forex, CIoD said, “Improving foreign exchange policies is another key intervention. The CBN should adopt more flexible foreign exchange policies to ensure businesses can access foreign currency more easily. This could involve creating a more transparent and market-driven exchange rate system.”

https://punchng.com/central-bank-interventions-will-stabilise-naira-pwc/?utm_source=telegram&utm_medium=social

4 Likes

Re: Central Bank Interventions Will Stabilise Naira – Pwc by EmeeNaka: 7:31am On Jun 26
CBN governor and Tinubu are grasping at straw.There is no CBN measure to return Naira back to where Tinubu met it.
Currently, CBN is battling to stabilise naira at where it is.

17 Likes

Re: Central Bank Interventions Will Stabilise Naira – Pwc by CrownedPhoenix: 7:31am On Jun 26
They have come again

12 Likes 1 Share

Re: Central Bank Interventions Will Stabilise Naira – Pwc by Generalkaycee(m): 7:31am On Jun 26
Can any Good policy come out of CBN ?
I doubt!

7 Likes

Re: Central Bank Interventions Will Stabilise Naira – Pwc by Mayng01(m): 7:31am On Jun 26
Stabilize my 🦶

9 Likes

Re: Central Bank Interventions Will Stabilise Naira – Pwc by EyeCumInPiece: 7:31am On Jun 26
Govt of Will, Shall, Want to, Plan to, Going to...

Fellow Nigerians, Happy Tinubulation. grin

28 Likes 2 Shares

Re: Central Bank Interventions Will Stabilise Naira – Pwc by Padipadi: 7:32am On Jun 26
Times are hard. Everywhere.

Re: Central Bank Interventions Will Stabilise Naira – Pwc by mrvitalis(m): 7:32am On Jun 26
This CBN? I doubt

Massive CBN soft loans to key manufacturing sector is the only thing that can save Nigeria

If I was president now

1) I would cancel the 15 trillion naira Lagos to calabar road and divert the money to the manufacturing sector

Pharmaceutical industry would get 2 trillion loan interest free for 3 years then 7% after payment after 6 years

Loan can only be used to build in infrastructure to manufacture what they import or expand what they locally produced

This would instantly create 200,000 jobs minimum and add 100 billion yearly revenue to the government minimum

Do same for chemical industry, and some other key industry

This is how u stablize an economy not by intervention or building infrastructure

21 Likes 2 Shares

Re: Central Bank Interventions Will Stabilise Naira – Pwc by Afamsi: 7:32am On Jun 26
There will be no improvement as long as coccaine sniffer continue to create harsh business enviroment.. Count how many foreign investors have left nigeria since the begining of this wicked government

5 Likes 1 Share

Re: Central Bank Interventions Will Stabilise Naira – Pwc by Paraman: 7:33am On Jun 26
Tinubu administration is on the right path. Tinubu is leading Nigeria to the promise land.

4 Likes 1 Share

Re: Central Bank Interventions Will Stabilise Naira – Pwc by XXXsearch: 7:33am On Jun 26
Hahhw
Re: Central Bank Interventions Will Stabilise Naira – Pwc by Olaide1295: 7:34am On Jun 26
The Naira has been stable around 1500/$ for the past few months. Stability is all we’re asking.

3 Likes 1 Share

Re: Central Bank Interventions Will Stabilise Naira – Pwc by habeeboladimeji(m): 7:34am On Jun 26
We are all watching, one year gone already
Re: Central Bank Interventions Will Stabilise Naira – Pwc by BigDawsNet: 7:35am On Jun 26
How many policies does it takes to stabilise Nigeria currency?




We don't want trial and error abage

2 Likes

Re: Central Bank Interventions Will Stabilise Naira – Pwc by Dshocker(m): 7:36am On Jun 26
It appears it might get worst since their policies are against the economy.

These bastards should improve power, build and assist exiting manufacturing industries, invest in agriculture and lastly major into exportation and see how the economy would start heading for positivity.

2 Likes 1 Share

Re: Central Bank Interventions Will Stabilise Naira – Pwc by koladata(m): 7:37am On Jun 26
Now I believe it when they say the naira will hit 3k, Looks like they are introducing it to us gradually, once we get used to 1,500, they take it to 2k then bring it back to 1,700. It will look like its just 200 naira added till we get to 3k

5 Likes 2 Shares

Re: Central Bank Interventions Will Stabilise Naira – Pwc by Kwaramustgoodag: 7:37am On Jun 26
Sakamaje. Only on papers, not in real
Re: Central Bank Interventions Will Stabilise Naira – Pwc by NeckingNgulping(m): 7:37am On Jun 26
Paraman:
Tinubu administration is on the right path. Tinubu is leading Nigeria to the promise land

Shame no dey catch you?

8 Likes

Re: Central Bank Interventions Will Stabilise Naira – Pwc by Sheuns(m): 7:39am On Jun 26
grin
Re: Central Bank Interventions Will Stabilise Naira – Pwc by ShootThemAll(m): 7:39am On Jun 26
PwC has collected their own share of media Propaganda money....This una country eh. Can any good come out from this present government? The answer is a capital NO!!!!

1 Like

Re: Central Bank Interventions Will Stabilise Naira – Pwc by faithfull18(f): 7:40am On Jun 26
Okay
Re: Central Bank Interventions Will Stabilise Naira – Pwc by Emu4life(m): 7:41am On Jun 26
How Cow Torso is more than a year into his tenure and still sounds clueless....

2 Likes

Re: Central Bank Interventions Will Stabilise Naira – Pwc by temmyyem: 7:41am On Jun 26
So after stabilizing the naira, the people will cook and it abi?

The power that be have being supervising the killing of the farmers and those in the rural area since 2008, till this day, the killing has not stopped. Who cares if you stabilize the naira or not?

1 Like

Re: Central Bank Interventions Will Stabilise Naira – Pwc by JuanDeDios: 7:41am On Jun 26
EmeeNaka:
CBN governor and Tinubu are grasping at straw.There is no CBN measure to return Naira back to where Tinubu met it.
Currently, CBN is battling to stabilise naira at where it is.
Well, nothing wrong with that. The naira was hitherto propped up on stilts anyway.

1 Like

Re: Central Bank Interventions Will Stabilise Naira – Pwc by Antoeni(m): 7:41am On Jun 26
Do You Know That

Re: Central Bank Interventions Will Stabilise Naira – Pwc by vibemad007: 7:42am On Jun 26
Afterwards Jesus will come on Sunday n drink tea with tinubu.

This i have seen. 🙄
Re: Central Bank Interventions Will Stabilise Naira – Pwc by RevenuesBoost(f): 7:44am On Jun 26
Just watching
Re: Central Bank Interventions Will Stabilise Naira – Pwc by oluwaseyi0: 7:45am On Jun 26
It's obvious we can't afford to float the naira
Re: Central Bank Interventions Will Stabilise Naira – Pwc by Paraman: 7:47am On Jun 26
NeckingNgulping:


Shame no dey catch you?
Why should you be ashame?

1 Like

Re: Central Bank Interventions Will Stabilise Naira – Pwc by MetaMatrix: 7:48am On Jun 26
DANGER!!!!!

WHY THE NORTH WILL NOT LOVE PRESIDENT BOLA AHMED TINUBU

*Power Equation Is Being Adjusted by President Tinubu*

I hope we are all already agreed on the screwed process where the Northerners took advantage of their being in power for a long period of time in the history of Nigeria. But going forward, things have begun to be adjusted for all of us to feel some sense of belonging in this same Nigeria.

For instance, the DSS has 37 state directors. Ot this number, 26 were northeners before President Tinubu came on board in May 2023. As at today, we now have 18 Northerners and 19 Southerners.
Tinubu reshuffled them very quietly. Now, in the South, we now have-
6 from South-east
5 from South-south
8 from South-west

DSS has 6 functioning directorates. Before President Tinubu came on board, all
the 6 directorates were headed by Northerners !!! He quietly reshuffled them, and now each geopolitical zone has a control over a directorate. Dr Peter Afunnaya, the brilliant mind I have opportuned to meet on several occasions now represents his zone, the Southeast as a Director.

Let us support President Tinubu, because he means well and he will balance the power equation for all of us to take pride of being Nigerians. If you are a Southerner working against President Tinubu, something must be wrong with your view and your thinking.

That is why I always get offended when Southerners will be abusing President Tinubu and even prefer a Northerner like Atiku ( who is the largest African estate investment owner in Dubai) to President Tinubu, or siding Obi to disparage the same Judiciary whom Obi had benefitted from as a former Governor.

What you must all know is Northerners love power and they will always put their people on top, all of them including Atiku, in their spirit of 'born to rule'.

The same Tinubu made a Christain southerner the Minister of FCT, the first and only Christain southerner in the history of Nigeria to occupy the post substantially (The Southerner that occupied the place before Hon Barr Nyesom Wike didn't have full portfolio, they were all junior ministers).

Before Tinubu came on board, Northerners occupied 28 out of the 37 state commands of the Nigeria Police.
They would post Southerners only as commisioners of police to places like the NPA, Airport, Railway, Police schools etc but not state commands !!!

Tinubu came and directed the amelioration of the lopsided postings.
Now out of the 37 state commands, the
Northerners now occupy 18 slots while the
Southerners now have19 !!!

Let us be praying for President Tinubu my people. He will balance the power equation that has been tilted against Southern Nigeria for decades. The success of Nigeria under President Tinubu is for us all as a Country.

Surely, he cannot be doing all these and the North will side with him. That is why they are doing everything to truncate his administration !!! All the problems President Tinubu is addressing now were caused by the former President Buhari !!

Not less than 18 of his (Buhari’s) ministers are quietly returning the money they stole from the last administration including Mohammed Bello (FCT Minister) Hadi Sirika (Aviation), Shehu Malami (former Attorney General and Minister of Justice), Hadjia Saudatu (former Minister of Humanitarian Affairs), Mallam Bello (the former Accountant General of the Federation) and the complete rogue of Buhari’s tenure, Mr Godwin Emefiele !!! These people were 'made' by the sheer nepotism and grand corruption that defined the Buhari regime.

The same regime produced a recharge card seller in 2015 who was so close to President Buhari that he became a multi-billionaire by 2023 and posted as a Director of a powerful government agency (the NIA) to London as the former administration was handing over to President Tinubu !!!

Definitely, all these will not go well with the Northerners !!! What I like President Tinubu for is that he will also not talk, like Buhari, but he is a workaholic and is sure of what he is doing !!
Even the hausas who'd been totally consumed, and never given ANY political consideration, abused, cheated and exploited to the brim ( of over 400 kings in the north, no single Hausa. This is what's empowering the miyetialla's evil genocide nationwide), can now contest power and get what's for them.

So, now that you know the reasons for their bad blood, don't join them to disparage President Tinubu. Rather pray for him to succeed so that all of us can raise up out heads as true Nigerians !!! Nigeria belongs to us all !!!
May God bless the Federal Republic of Nigeria 🇳🇬 WE MOVE !!!

5 Likes

Re: Central Bank Interventions Will Stabilise Naira – Pwc by DMerciful(m): 7:48am On Jun 26
Stabilization is different from bringing down the exchange rate. If the exchange rate does not come to where APC started criticizing PDP govt then they've failed with regards to this

1 Like

Re: Central Bank Interventions Will Stabilise Naira – Pwc by NeckingNgulping(m): 7:48am On Jun 26
Paraman:
Why should you be ashame?

You mean you don't know why you should be ashamed of yourself?

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