3psmars

Saturday 20.07

°C
Article Image

Nigeria devalues naira and raises rates after oil price slide

Nigeria has devalued the naira, saying a drop in oil prices had made it hard to defend its currency. The country’s bank central bank also raised interest rates from 12% to 13% in a bid to stem foreign reserve loses.

Nigeria has spent billions of dollars defending the naira using “dwindling foreign reserves”, the bank’s governor said. Falling oil prices also affected the Angolan kwanza, which hit a record low against the dollar on Tuesday.

The bank’s governor Godwin Emefiele said: “Falling oil prices have consistently reduced the accretion to external reserves, thus constraining the ability of the bank to continually defend the naira and sustain the stability of the naira exchange rate.”

The bank moved the target band of the currency to 160-176 naira to the US dollar, compared with 150-160 naira previously. It also raised interest rates by 100 basis points.

Commitment

Nigeria, which has one of the biggest economies in Africa, and is one of the continent’s leading energy producers, has spent billions of dollars in the past year shoring up the naira, Mr Emefiele said. Foreign reserves stood at around $37bn (£23.5bn), down over 18% from a year ago. 

“Big surprises from the central bank,” said Razia Khan, head of Africa research at Standard Chartered……..Read more



Related Content

3PSMARS Analytics

12/4/2014

Nigeria Signals Revenue to Plunge as Benchmark Oil Price Cut

First published in bloomberg.com By Chris Kay and Emele Onu Dec 4, 2014 10:26 AM GMT+0100; Photograph by: Chris Goodney/Bloomberg On Nov. 16, Finance Minister Ngozi Okonjo-Iweala had cut the benchmark price to $73 a barrel for 2015, down 5.8 percent from this year’s budget. Nigeria lowered its budgeted oil price for a second time in less than a month, signaling government revenue is set to plunge in Africa’s biggest crude producer.

3PSMars Admin

Resources

10/7/2014

Nigeria Country Report

Nigeria Country Report

3PSMars Admin

3PSMARS Analytics

7/24/2018

Nigerian politics and governance

Politics is the art of looking for trouble, finding it, misdiagnosing it and then misapplying the remedies. – Groucho Marx.

3PSMars Admin

People's Parliament

7/30/2015

Nigeria in Diaspora

As a Nigerian in the Diaspora I would love to go back after I finish my education to pursue my own dreams but realistically we are faced with obstacles that cause many diasporans to become reluctant to return back to Africa to start up a business. Here are my reasons why…

3PSMars Admin

3PSMARS Analytics

7/30/2015

Nigeria in Diaspora

Nigeria in Diaspora by VENTURES AFRICA – On one of my social media networks I spotted a comment that said “By the time Africans get featured in an article like this the gNigerians old rush will be over.”

3PSMars Admin

3PSMARS Analytics

3/8/2016

Nigeria Debates Push for Locally-Made Goods

Nigeria Debates Push for Locally-Made Goods – As Nigeria struggles with the price of imported goods and slow economic growth, a social media campaign is encouraging Nigerians to buy local.

3PSMars Admin