forex Archives - Gifted Analysts

Why Has the Subsidy Removal Policy Failed?

By Fawaz AyobamiPosted on April 26, 2021Posted in EconomyTagged credibility, forex, Inflation, Oil, Petrol, SubsidyNo Comments

At the moment, there seems to be a consensus among intellectuals and institutional bodies like the IMF and the World Bank on the potential positive impact of the removal of subsidy on the economy. Their arguments are pretty broad and far-reaching. They submit that subsidy payment continues to widen the inequality gap in the country since petroleum subsidy is an implicit subsidy (financing consumption), and the wealthy who consume more than the poor citizens whom the government seeks to protect from the high fuel price also benefit from the regulated price. At the same time, their taxes have not increased commensurately.

Nigeria: A Frail Giant?

By Fawaz AyobamiPosted on April 8, 2021Posted in EconomyTagged Bond, Debt, Debt Profile, Devaluation, Exchange Rate, External Reserves, FDI, forex, Ghana, Nigeria, World BankNo Comments

Since President Muhammadu Buhari’s re-election in 2019, the country has faced a myriad of social and economic challenges. Inflation had surged from 11.40% in May 2019 to 17.33% last month; the Naira has been devalued three times, losing 33% of its value, insecurity has increased, and the general investment climate has waned. All these have happened while Nigerians have not seen any meaningful increase in their economic welfare: the country slumped into a second recession in five years. Many states have found it challenging to implement the new minimum wage signed into law in 2019. We also note that even if all the states had implemented the new minimum wage, the total number of civil servants to the entire labour force is considerably low. To sum it, you would still be worse off if you hold 2X the same Naira note you had in 2010 today.

Implication of the Forex Ban on Food Items

By Sheriffdeen AdeotiPosted on September 19, 2020Posted in EconomyTagged BDC, cbn, Export, Food, forex, InflationNo Comments

With 84% of Nigeria’s export (as at Q2’2020) as oil products, we reiterate that Nigeria does not really have an import problem. Nigeria has an export problem and until that problem is solved, average Nigerians will always suffer higher commodity prices due to the demand management strategy of the CBN anytime external shocks occur in the oil market.

Nigeria’s Double Whammy of Inflation and Unemployment Increases

By Sheriffdeen AdeotiPosted on August 20, 2020Posted in EconomyTagged Economic Growth, forex, Inflation, Nigeria, UnemploymentNo Comments

Persistent rise in the general price of goods within an economy is acclaimed inflation. Increasing prices could signal consumption spending by economic agents within the economy, however persistent rise makes fixed income earners and fixed securities like bonds worse off. A healthy level of inflation (1-3%) is acceptable to propel economic growth. If consumption spending […]

Towards a Unified Foreign Exchange Rate System in Nigeria

By Sheriffdeen AdeotiPosted on July 5, 2020Posted in EconomyTagged Bond, cbn, economics, External Reserve, forex, naira, PrintNo Comments

In a bid to increase access to Forex, the CBN created the I&E FX (Investors and Exporters Forex Window) in 2017 for importers in order to ease the pressure faced by the businessmen in the foreign exchange market. However, there still have been disparities among the CBN official rate, I&E rate (also known as NAFEX) and the parallel market rate.

The Economics of Printing the Naira

By Gifted AnalystsPosted on May 31, 2020Posted in Articles, EconomyTagged Bond, cbn, External Reserve, Federal Government, forex, naira, Print1 Comment

This article explains why the idea of printing more money is unfounded given the state of the Nigerian economy.

FOREIGN EXCHANGE RESTRICTION: BEFORE YOU CRITICIZE THE CBN.

By Abdulazeez KurangaPosted on October 6, 2019Posted in Articles, DataTagged 41 items, cbn, dollar, forex, market, naira, parallel, RestrictionNo Comments

Foreign exchange is the exchange of one currency for another, or the conversion of one currency into another currency. It also refers to the global market where currencies are traded virtually around-the-clock. The term foreign exchange is usually abbreviated as “forex” and occasionally as FX. Foreign exchange transactions encompass everything from the conversion of currencies by a traveler at an airport kiosk to billion naira payments made by corporate giants and government for goods and services purchased overseas.

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