BusinessFeaturedHighlight

CBN survey finds Nigerian businesses expectant of naira appreciation this month

287
By Ruth Olurounbi, Abuja, Business Editor.

 

  • As firms expect inflation rates to decline

A new Central Bank of Nigeria (CBN) survey report released on Friday has found that Nigerian businesses expect that naira will appreciate this month, judging by confidence indices which stood at 27.3 and 44.8 points, respectively.

Additionally, firms expect inflation rates to fall this month at -15.0 points, while also expecting borrowing rates to decline by  -0.9 points in the month.

According to the statistics department of the apex bank, the Nigerian currency appreciated in July, opening at N362/$ for the month and appreciated to a 2-year high of  N360/$ on 4th of July, before closing at N361/$ on July 13th.

A total sample size of 1,050 businesses comprising of  small, medium and large organisations across import and export sectors, in the July 2018 Business Expectations Survey (BES), was carried out during the period July 12-20, 2018 showed Nigerians confidence in naira appreciation this month.

CBN Governor, Emefiele

The survey reported that naira traded  between N361.16/$ and N362.58/$ at the Investors and Exporters Foreign Exchange (IEFX) in the  days under review, while total forex traded at the IEFX window in the first half of July stood at  $1.72 billion compared June’s $2.29 billion.

Although firms were optimistic on naira appreciation front, their outlook on financial conditions (working capital) and average capacity utilization declined, as the indices stood at 2.2 and 10.0 index points respectively when compared with the respective 11.7 and 23.4 points recorded in June 2018.

Also, respondents’ overall confidence index (CI) on the macro economy in July 2018 declined at 13.6 index points when compared with the level of 34.7 index points recorded in June 2018. However, businesses outlook for August 2018 showed more confidence on the macro economy at 58.7 index points.

“Firms identified insufficient power supply, high interest rate, unfavourable economic climate, financial problems, unclear economic laws, insufficient demand and unfavourable political climate as the major factors constraining business activity in the current month,” the report read in part.

 

Leave a comment

Related Articles

Carjacking in FCT: Police recover Land Cruiser Prado after high-speed hot chase

In a swift response to a distress call, the Federal Capital Territory...

Just in: Abuja Court remands 109 alleged foreign hackers in prison

No fewer than 109 alleged foreign hackers, including females who attempted to...

Lagos, Abuja airports receive full NCAA certification

Murtala Muhammed International Airport (MMIA), Lagos, and the Nnamdi Azikiwe International Airport...

Day 3 of African Military Games: Nigerian Armed Forces Shine, Win 17 Medals

The Nigerian Armed Forces have made a remarkable impact at the ongoing...

FG raises N346bln at Nov. 2024 bond auction, reflecting strong investor interest

The Federal Government has successfully raised N346.155 billion at its November 2024...

Breaking: Supreme Court Nullifies National Lottery Act

The Supreme Court on Friday nullified the National Lottery Act 2005 enacted...

NNPC Ltd. hosts NSC boss, pledges support for revitalization of Nigerian football

In a significant move to boost Nigerian football, the Nigerian National Petroleum...

Nigerian youths essential to repositioning Africa, says VP Shettima

Vice President Kashim Shettima has reaffirmed the federal government’s commitment to youth...

Just in: Simon Ekpa ‘ll be extradited to Nigeria to face charges – Defence Headquarters

The Nigerian Defence Headquarters, Abuja, has announced plans to extradite Simon Ekpa,...

NPA’s CEO Dantsoho Makes History as First Nigerian Chairman of PMAWCA

In a groundbreaking achievement, Dr. Abubakar Dantsoho, Managing Director of the Nigerian...

Save for rainy day, Federal Accountant General urges state govts, emphasizes transparency, accountability

In a bid to ensure financial stability during adverse situations and economic...

Sacked UNIZIK VC Odoh to Tinubu: You can’t fire me through press release

Sacked Vice-Chancellor of Nnamdi Azikiwe University (UNIZIK), in Awka, Anambra State, Prof....

UBA to empower MSME’s with wealth management strategies at its ‘Built to Last’ series

As part of its commitment to deepen the growth and sustainability of...

Olopade assumes office as NSC DG, promises new lease of life for Nigerian sports

Bukola Olopade had assumed office as the Director General of the resuscitated...

Amid High Inflation Rate, IMF Pledges Support for Nigeria’s Economic Reforms

International Monetary Fund (IMF) President Kristalina Georgieva and her team met with...

Nigeria’s Super Falcons Ajibade, Nnadozie, Nominated for 2024 CAF Women’s Player of the Year

The Confederation of African Football (CAF) has announced the nominees for the...

Just in: FG announces reshuffle of governing councils at FUOYE, Kogi varsity

The Federal Government has made changes to the governing councils of Federal...

Exclusive: Eguavoen Opens Up on Declining NFF Contract Extension, Reveals Reasons

Super Eagles Coach, Austin Eguavoen, has revealed why he declined the Nigeria...

Boost for Nigeria’s Oil Production As NNPC’s Utapate Crude Grade Hits Global Oil Market

In a major boost for Nigeria’s crude oil production, revenue generation, and...

Just in: FG sacks varsity Pro-Chancellor for misconduct

The Minister of Education, Dr. Tunji Alausa, has announced the removal of...