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Nairaland Forum / Nairaland / General / Business / CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% (42380 Views)
CBN Reduces Lending Rate To 11 Percent / Cash Shortage Hits Banks, Overnight Lending Rate Jumps / CBN Officially Devalues Naira (2) (3) (4)
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Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by BlackTechnology: 8:59pm On Nov 25, 2014 |
Volksfuhrer: O boy Wise up CBN is trying its best to prevent depletion of our foreign reserve since no one is certain if oil price will rise again. 4 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 8:59pm On Nov 25, 2014 |
atlwireles:Maybe we should start with the guy with the largest chunk. (52%) 4 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 9:02pm On Nov 25, 2014 |
Obiagelli: So the constitution that gave all land and mineral rights to the Federal government was written by PDP leaders? 3 Likes 1 Share |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 9:05pm On Nov 25, 2014 |
Obiagelli: Largest chunk of what? The Nigeria mentality problem, you leave the trouble brewing in your backyard, to attack the one in Jakata. 4 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 9:09pm On Nov 25, 2014 |
atlwireles:Who has been leading the executive, legislature and judiciary since 1999? Are they waiting for the military to give them another constitution? Have your pdp ever muted the ides 4 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by BlackTechnology: 9:10pm On Nov 25, 2014 |
Obiagelli: It is your Hausa Fulani allies that have opposed resource control and fiscal federalism. 4 Likes 1 Share |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 9:12pm On Nov 25, 2014 |
atlwireles:Clownish pdp mentality, leave the main problem and start chasing ghost. Who controls the agencies that fights corruption and waste. 3 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by BlackTechnology: 9:13pm On Nov 25, 2014 |
Obiagelli: It is your Hausa Fulani allies that have opposed resource control and fiscal federalism. 1 Like |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 9:13pm On Nov 25, 2014 |
BlackTechnology:I should have stopped earlier. Total waste of time. 3 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by BlackTechnology: 9:13pm On Nov 25, 2014 |
atlwireles: Gbam 3 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by nikkyshyne(f): 9:17pm On Nov 25, 2014 |
Reading through this thread with a heavy heart. 2 Likes 3 Shares |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 9:17pm On Nov 25, 2014 |
Obiagelli: Why do you talk like a kid sometimes? Where was your mouth when a conference was called to discuss Nigeria? Please remind us where you and your party stood on the issues as regard to federalism in all totality? Pretenders like you, are the core reason this Nation will go no where. Always speaking from both sides of your mouth. 4 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by BlackTechnology: 9:17pm On Nov 25, 2014 |
Obiagelli: Is it not true that the North opposed resource control and fiscal federalism.? Yes or No. 4 Likes 1 Share |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 9:19pm On Nov 25, 2014 |
Obiagelli: You are an expert on clownish mentality. So, the corruption in your state has to be fought by the federal government? Now we are getting somewhere. 1 Like |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by BlackTechnology: 9:20pm On Nov 25, 2014 |
atlwireles: Gbam Ask the stand taken by Hausa Fulani people on resource control and fiscal federalism. 1 Like |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 9:22pm On Nov 25, 2014 |
atlwireles:You just confirmed what i said about, what happened to your pdp using its majority in the house over the last 15yrs for a change. Where is your jamboree confab today? Abeg i wan go sleep 4 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 9:23pm On Nov 25, 2014 |
atlwireles:Fought by who? Me? Abeg abeg 2 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by anonimi: 9:26pm On Nov 25, 2014 |
Obiagelli: Too many people here who know next to NOTHING about the fundamentals of our country's geo-politics, democratic structures & constitution YET will be making plenty of EMPTY swagger to put their abject IGNORANCE on full display. No wonder such people are blindly following a clueless old soldier 4 Likes 3 Shares |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 9:26pm On Nov 25, 2014 |
Obiagelli: Do you how many votes it takes to amend the constitution? Do you know how many state houses need to concur? Try and educate yourself about that process. You might learn something about this Federal Republic. 1 Like 1 Share |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 9:29pm On Nov 25, 2014 |
Obiagelli: Please beg yourself. 2 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 9:33pm On Nov 25, 2014 |
anonimi:Educate us abeg 3 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 9:34pm On Nov 25, 2014 |
atlwireles:Are you saying we have not amended the constitution since 1999? 3 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 9:34pm On Nov 25, 2014 |
BlackTechnology: The National conference taught me one lesson, the Hausa/Fulani are not the only people against resource control and fiscal federalism. Please look for Ubong Attah interview and read it. 2 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 9:38pm On Nov 25, 2014 |
Obiagelli: What amendments have you passed as it relates to federalism? Are you talking of the political self preservation amendments passed by legislator on election matters? 2 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by BlackTechnology: 9:39pm On Nov 25, 2014 |
atlwireles: Is the interview on naira land |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Nobody: 9:41pm On Nov 25, 2014 |
atlwireles:All i wanted to hear, you made it sound as if it was impossible to amend the constitution earlier. Good night 3 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 9:41pm On Nov 25, 2014 |
BlackTechnology: Maybe, it was on vanguard, if my recollection serves me well. I will look for later and put it out. |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 9:42pm On Nov 25, 2014 |
Obiagelli: It easy, when nothing is involved. Attempt to amend the constitution for resource control and fiscal federalism. You will hear your party members declaring war. 2 Likes 2 Shares |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by Ijebulogic(m): 9:53pm On Nov 25, 2014 |
SLS must be laughing so hard as the Vagabonds in Power continue to R4pe our country. Dollar didnt move this much in Sanusi's 5 years as CBN Governor. Ogbeni Emefiele....check yourself!!! 4 Likes |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by BlackTechnology: 9:57pm On Nov 25, 2014 |
atlwireles: Even Yoruba elites opposed off shore money given to oil producing states in the confab 1 Like |
Re: CBN Devalues Naira From 155 to168 , Raises Lending Rate to13% by atlwireles: 10:01pm On Nov 25, 2014 |
Nigeria’s lifting of its interest rate for the first time in three years, and simultaneous currency devaluation, may stave off more drastic action in the three months before elections in Africa’s largest economy. “The combined measures should help to support market sentiment in the near term and ease pressure on reserves,” said Stuart Culverhouse, head of research at Exotix Ltd. in London. “It gives the Central Bank of Nigeria a better chance that it can get through to February’s elections without further or even stronger measures becoming necessary,” he said in e-mailed comments. Responding to plunging oil prices which have sent the naira to an all-time low, the regulator lifted the benchmark rate by 100 basis points to a record high of 13 percent in its penultimate meeting before the national vote, Governor Godwin Emefiele told reporters today in Abuja, the capital. The bank also moved the naira’s official peg to a midpoint of 168 per dollar, from 155, and widened its trading band to 5 percent either side from a previous 3 percent. The regulator’s moves were more assertive than expected. Only three of nine economists surveyed by Bloomberg estimated a rate increase, while six predicted the bank would hold at 12 percent. “The current challenge requires bold policy measures, moves on both the demand and supply sides of the foreign exchange market,” Emefiele said. Emefiele, 53, became central bank governor in June with a pledge to keep the currency stable and avoid raising interest rates before the vote in February. His promise has proved difficult to keep as slumping crude prices erode government revenue in the continent’s top oil producer. “There are still risks around oil prices,” Ridle Markus, an Africa strategist at Barclays Africa Group Ltd. who forecast the rate increase, said by phone from Johannesburg. “It could get worse for them.” Cash Reserve The central bank also increased the cash reserve requirement on private sector deposits by 500 basis points to 20 percent. “The current downturn in oil prices is not transitory but appears to be permanent, being a product of technological advances,” Emefiele said. The government’s suggested budget benchmark oil price of $73 per barrel for 2015, down from $77.5 this year, may be “overly optimistic,” he said. The naira is being overwhelmed by a drop in prices for oil, Nigeria’s biggest foreign-exchange earner, with the currency weakening to a record low of 178 per dollar on Nov. 24. While the central bank has stepped in to defend the currency, selling dollars outside its twice-weekly auctions, the interventions have reduced foreign reserves to a five-month low of $37.2 billion. Naira Weakens The currency has lost more than 7.4 percent this quarter, the deepest decline among 24 African currencies tracked by Bloomberg after Malawi’s kwacha and Gambia’s dalasi. Taking aggressive steps now would obviate the need to make even more sweeping moves later, when reserves may be lower, Emefiele said. “While Nigeria cannot do much to influence the oil price, the combination of measures today sends a powerful signal to all stakeholders on the CBN’s intent to do what it can to preserve macroeconomic stability,” Razia Khan, head of Africa economic research at Standard Chartered Plc in London, said in e-mailed comments after the decision. Nigeria’s government is planning to cut spending by 6 percent next year in response to lower oil prices, Finance Minister Ngozi Okonjo-Iweala said Nov. 16. Okonjo-Iweala’s announcement followed Emefiele’s pledge to continue defending the naira. Oil accounts for 70 percent of government revenue. The rate-setting Monetary Policy Committee last adjusted the benchmark rate in October 2011, when then-Governor Lamido Sanusi increased it by 275 basis points. President Goodluck Jonathan, who will seek a second full term in next year’s vote, suspended Sanusi in February after he alleged that billions of dollars in national oil revenue had gone missing, charges the authorities deny. Yesterday’s actions “assert the CBN’s operational independence, which is perhaps important after events earlier this year and ahead of February’s election,” Culverhouse said. To contact the reporter on this story: Daniel Magnowski in Abuja at dmagnowski@bloomberg.net http://www.bloomberg.com/news/2014-11-25/nigeria-raises-rate-to-record-13-devalues-naira-on-oil-drop. |
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