The Central Bank of Nigeria recently replaced its currency peg arrangement and allowed the Nigerian naira to float freely, resulting in the currency falling over 42% in its first week. While this devaluation was needed to address foreign exchange shortages caused by low oil prices and will boost Nigeria's long-term growth, it will be painful in the short-term by increasing inflation and import costs. The move also does not solve Nigeria's economic challenges, which still require reforms to tackle issues like corruption and security threats.
Lagos (nigeria) real estate investment outlook q1 2018Munachi C Okoye
On the back of a stable, OPEC supported oil price well above its historical lows, Nigeria has emerged from recession into a period of weak economic growth. Following the oil price falls to US$30p/b in early 2016, Nigeria had taken tentative steps towards diversifying the economy away from oil towards agriculture. With a stable oil price and growing external reserves, the pain has eased and our attention turned away from the diversification story to the 2019 elections while we fund our expenditure with borrowing. With the increased borrowing, any sustained deterioration in the oil price will put us back in an even more precarious situation than we were before. Nigeria is living on borrowed time and borrowed money. We trust that you will find our latest report insightful and ask that you forward it to colleagues who have an interest in African real estate markets in general and Nigeria in particular.
Standpoint: Global Reflation by Kevin Lings STANLIB
Fears of sustained deflation and stagnant growth in the United States and Europe have been replaced by a more optimistic growth outlook as well as concerns about rising inflation. This has driven developed market equities higher, but also weakened major bond markets.
Factsheet for Birla Sun Life Mutual Fund- WishfinAnvi Sharma
The scheme aims to maximize long term capital appreciation by investing primarily in equity & equity related securities of companies engaged in banking & financial services. The scheme would invest in banks as well as NBFC's, insurance companies, rating agencies, broking companies, etc.
Lagos (nigeria) real estate investment outlook q1 2018Munachi C Okoye
On the back of a stable, OPEC supported oil price well above its historical lows, Nigeria has emerged from recession into a period of weak economic growth. Following the oil price falls to US$30p/b in early 2016, Nigeria had taken tentative steps towards diversifying the economy away from oil towards agriculture. With a stable oil price and growing external reserves, the pain has eased and our attention turned away from the diversification story to the 2019 elections while we fund our expenditure with borrowing. With the increased borrowing, any sustained deterioration in the oil price will put us back in an even more precarious situation than we were before. Nigeria is living on borrowed time and borrowed money. We trust that you will find our latest report insightful and ask that you forward it to colleagues who have an interest in African real estate markets in general and Nigeria in particular.
Standpoint: Global Reflation by Kevin Lings STANLIB
Fears of sustained deflation and stagnant growth in the United States and Europe have been replaced by a more optimistic growth outlook as well as concerns about rising inflation. This has driven developed market equities higher, but also weakened major bond markets.
Factsheet for Birla Sun Life Mutual Fund- WishfinAnvi Sharma
The scheme aims to maximize long term capital appreciation by investing primarily in equity & equity related securities of companies engaged in banking & financial services. The scheme would invest in banks as well as NBFC's, insurance companies, rating agencies, broking companies, etc.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Monthly Newsletter on key sectors of Pakistan Economy with updates on Money Market and Pakistan Stock Exchange (PSX) and latest numbers of Inflation, Current and Fiscal Account.
Fed must relent. Our expectations now is for a state dependent (global financial conditions to stabilise, cushion rising debt repayment burden and allowing domestic leverage to level off, coupled with still moderate economic growth/inflation, policy options to widen positively globally, especially in China) Fed relent with scope for a final 25-50bps, if any (pause otherwise), in late 2019/2020, should the cycle extents, with the FFR hitting cycle terminal at 2.75-3.00%.
MTBiz is for you if you are looking for contemporary information on business, economy and especially on banking industry of Bangladesh. You would also find periodical information on Global Economy and Commodity Markets.
Monthly Newsletter on key sectors of Pakistan Economy with updates on Money Market and Pakistan Stock Exchange (PSX) and latest numbers of Inflation, Current and Fiscal Account.
Fed must relent. Our expectations now is for a state dependent (global financial conditions to stabilise, cushion rising debt repayment burden and allowing domestic leverage to level off, coupled with still moderate economic growth/inflation, policy options to widen positively globally, especially in China) Fed relent with scope for a final 25-50bps, if any (pause otherwise), in late 2019/2020, should the cycle extents, with the FFR hitting cycle terminal at 2.75-3.00%.
Każdy z przedsiębiorców musi pamiętać o zobowiązaniach wobec ZUS-u i urzędu skarbowego. Zespół Accace zadbał o to aby w 2016 roku żadna z dat nie została przeoczona.
Zmeny v legislatíve od roku 2015, ktoré by ste nemali prehliadnuť, Slovensko ...Accace
Neprehliadnite legislatívne zmeny,
ktoré môžu ovplyvniť vaše podnikanie
Rok 2014 bol podobne ako posledné roky bohatý na zmeny, ktoré ovplyvnili rámcové
podmienky podnikateľského prostredia na Slovensku. Za hlavné ciele si vláda stanovila
najmä posilnenie pretrvávajúceho boja proti daňovým únikom ale zároveň aj zníženie
administratívneho zaťaženia podnikateľov a ochranu zamestnancov. V súvislosti
s týmito cieľmi boli predstavené viaceré nové opatrenia a povinnosti, ktoré viac či
menej skomplikovali život viacerým podnikateľom.
Od 1. januára 2015 vstúpili do platnosti novelizácie väčšiny zákonov ovplyvňujúcich
kvalitu podnikateľského prostredia, ako napríklad zákona o dani z príjmov, DPH,
zákona o účtovníctve, zákona o sociálnom a zdravotnom poistení a iných.
Našim cieľom bolo priniesť vám zhrnutie najdôležitejších zmien v oblasti účtovníctva,
miezd a daní, o ktorých by ste mali vedieť, pretože môžu ovplyvniť aj vaše podnikanie.
Special Report - Spain - Election AftermathAmir Khan
Growing political uncertainty and the fragmentation of the exiting political order among some of the developed countries of Europe appears to be here to stay. No more is this true than in the case of Spain where, in fact, there has been the absence of a functional government for almost a year now. Here's how we think the situation may ultimately play out in the country.
TYGER STYLE = Made from soft white polypropylene that knots very easily.
TYGER STYLE = Mildew, rot and moisture resistant. Twine dispenses directly from the carton.
SISAL STYLE = Natural fibers grip firm and is naturally biodegradable.
SISAL STYLE = Has great knot strength and is great for ball and bagging nursery stock.
Chana futures technical analysis outlook and an outlook on the Indian Rupee, by Gnanasekar Thiagarajan in The Pulses Conclave 2014 by India Pulses & Grains Association, IPGA
ABOUT THIS PUBLICATION
This Overview is based on ESADE’s Economic Report, January 2014, produced by the Department of Economics. This article was written by Prof. Josep M. Comajuncosa. The original document was produced with the support of Banc de
Sabadell.
Five years after the onset of the global financial crisis the world economy remains in a state of disarray. Strong expansionary monetary policies in the major developed economies have not succeeded in fostering credit creation and strengthening aggregate demand. Fiscal austerity and wage compression in many developed countries are further darkening the outlook, not only for the short term, but also for the medium term. The burden of adjustment of the global imbalances that contributed to the outbreak of the financial crisis remains with the deficit countries, thus strengthening deflationary forces in the world economy. The dominance of finance over real economic activities persists, and may even have increased further. Yet financial reforms at the national level have been timid at best, advancing very slowly, if at all. In 2008 and 2009, policymakers of several economically powerful countries had called for urgent reforms of the international monetary and financial system. However, since then, the momentum in pushing for reform has all but disappeared from the international agenda. Consequently, the outlook for the world economy and for the global environment for development continues to be highly uncertain. Some developing and transition economies have been able to mitigate the impact of the financial and economic crises in the developed countries by means of expansionary macroeconomic policies. But with the effects of such a response petering out and the external economic environment showing few signs of improvement, these economies are struggling to regain their growth momentum. Prior to the Great Recession, exports from developing and transition economies grew rapidly owing to buoyant consumer demand in the developed countries, mainly the United States.
OVERVIEW Five years after the onset of the global financial crisis the world economy remains in a state of disarray. Strong expansionary monetary policies in the major developed economies have not succeeded in fostering credit creation and strengthening aggregate demand. Fiscal austerity and wage compression in many developed countries are further darkening the outlook, not only for the short term, but also for the medium term. The burden of adjustment of the global imbalances that contributed to the outbreak of the financial crisis remains with the deficit countries, thus strengthening deflationary forces in the world economy. The dominance of finance over real economic activities persists, and may even have increased further. Yet financial reforms at the national level have been timid at best, advancing very slowly, if at all. In 2008 and 2009, policymakers of several economically powerful countries had called for urgent reforms of the international monetary and financial system. However, since then, the momentum in pushing for reform has all but disappeared from the international agenda. Consequently, the outlook for the world economy and for the global environment for development continues to be highly uncertain. Some developing and transition economies have been able to mitigate the impact of the financial and economic crises in the developed countries by means of expansionary macroeconomic policies. But with the effects of such a response petering out and the external economic environment showing few signs of improvement, these economies are struggling to regain their growth momentum. Prior to the Great Recession, exports from developing and transition economies grew rapidly owing to buoyant consumer demand in the developed countries, mainly the United States.
Since the previous meeting of the Monetary Policy Committee (MPC), several risks to the inflation outlook have begun to materialise. While headline inflation is comfortably within the inflation target band, indications are that we have passed the low point of the current cycle. Developments in the international environment have placed upward pressure on the inflation trajectory, while the domestic growth outlook remains challenging.
Special Report - Is the OPEC Agreement a Game Changer?Amir Khan
Contrary to expectations, OPEC managed to reach an agreement at the sidelines of the Global Energy Forum held in Algiers. But it's too early to say this will be turning for the oil market.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Btmu Economic Brief - Nigeria: Making Sense of the Naira's Devaluation
1. BTMU Economic Brief | July 20161
BTMU Economic Brief
Nigeria – Making Sense of the
Naira’s Devaluation
AMIR KHAN
ECONOMIC RESEARCH | LONDON
T: +44-(0)20-7577-2180
E: Amir.Khan@uk.mufg.jp
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
A member of MUFG, a global financial group
JULY 2016
n 15 June, the Central Bank of Nigeria announced that it will replace its current
currency peg arrangement – as part of which the Nigerian naira (NGN) was held stable
within a narrow band of 197-199 against the US dollar since March 2015 – in favour of
a market-determined exchange rate regime. In doing so, the currency fell to the tune of
around 42% in the first week that it was allowed to trade freely. As we will highlight in this
note, while this adjustment was much needed and is likely to boost Nigeria’s growth and
investment prospects in the long-run, in the more immediate-term, it will not be without its
costs.
A much needed adjustment…
While, within the emerging markets context, Nigeria is not the only oil producing nation that,
faced with the oil price crash, has succumbed to the temptation of devaluing its currency
recently – Russia, Angola and Kazakhstan have already gone down this road – the move is still
highly significant and has been driven by a number of key factors:
To begin with, low oil prices and a marked slowdown in capital inflows have created acute
foreign exchange (FX) shortages, exacerbated in recent months by militant attacks on oil
infrastructure that have severely disrupted oil production. In May, oil output fell below 1.5m
b/d, the lowest level in 27 years. The FX regime had become increasingly misaligned with
fundamentals, failing to compensate for adverse price developments in the oil market (see
Chart 1), on which the country is dependent for around 90% of its export revenues.
The economy contracted by 0.4% y/y in the Q1 of 2016, while the jobless rate has risen to
over 12% as low oil prices, fuel shortages and FX restrictions have hampered the
functioning of the economy. Foreign capital inflows, particularly investment have dried up,
and currency reserves have shrunk to around US$27bn from a figure of above US$40bn at
the start of 2014 (see Chart 2), further eroding Nigeria’s external buffers.
O
2. BTMU Economic Brief | July 20162
In our view, the introduction of exchange rate flexibility will be positive for investment and
growth, and reduce the NGN overvaluation, something which is already evident from the sharp
narrowing of the discrepancy between the actual value of the currency versus forward-looking
market gauges of its price (see Chart 3), though the expectation is for this trend to run further.
This development, in turn, should ultimately help to preserve Nigeria’s much-needed FX
reserves and signal to the market that the country has a strategy that will support growth and
development over the medium-term. Furthermore, a weaker NGN should help to ease fiscal
pressures by boosting the naira value of oil revenues. That said, the benefits of this policy
change will, however, take time to materialise as the NGN finds its equilibrium level and
investors become more comfortable with the new FX regime. Developments in international
and local oil markets, and Nigeria’s ability to attract foreign capital inflows are likely to be
important determinants of how the NGN is valued in the future.
…But the move will not be without its costs at least in the short-term….
While a move towards a more flexible exchange rate is well intentioned, the reality is that the
economy is likely to endure painful adjustment process, as the devaluation pushes up import
costs and adds to already elevated inflationary pressures. Headline inflation has surged this
year, rising to a six-year high of 15.6% y/y in May. This is far higher than the Central Bank of
Nigeria’s 6-9% inflation target range. A substantially weaker NGN risks inflation moving even
150
170
190
210
230
250
270
290
3100
20
40
60
80
100
120
140
01/14 07/14 01/15 07/15 01/16
Brent crude (LHS)
NGN per USD (RHS)
(NGN)
(MM/YY)
(US$/ barrel)
(Source) Macrobond
Chart 1: Despite the sharp tail off in global oil prices, the
currency was maintained within a narrow band until
recently...
After being kept within a
tight band, the decision to
allow the currency to float
has seen it fall >40%
41
27
0
5
10
15
20
25
30
35
40
45
01/14 07/14 01/15 07/15 01/16
(Source) Macrobond
(MM/YY)
Chart 2: ...And this was done by tapping into the
country's FX reserves
(US$ billions)
150
170
190
210
230
250
270
290
310
330
350
370
01/14 04/14 07/14 10/14 01/15 04/15 07/15 10/15 01/16 04/16 07/16
Actual ex. Rate
Market ex. Rate (1m)
Market ex. Rate (6m)
Market ex. Rate (12m)
(Source) Bloomberg
(MM/YY)
(US$/NGN - inverted)
Chart 3: The difference in the actual value of the naira versus market
based measures of its price has seen a sharp compression
3. BTMU Economic Brief | July 20163
higher. Mindful of this, we are of the view that a complimentary monetary policy tightening will
be needed to respond to the worsening inflation outlook, anchor inflation expectations and to
underpin the currency. But while an interest rate rise has not been forthcoming since the
changes to the exchange rate regime were announced last month, it is worth noting that the
policy rate was increased by 100bps in March to 12%. Despite this move, however, the policy
rate continues to lag the prevailing rate of inflation (see Chart 4) which, at 15.6%, means that
the policy rate in real – or inflation adjusted – terms remains in negative territory (-3.6%). While
this appears to suggest that rates in Nigeria have to rise by upwards of 300bps for the policy
rate to reach a level that would bring it closer to neutral levels, in reality we do not see rates
rising much beyond 200bps in H2 of this year, especially given the still difficult economic
environment in the country, which we think will serve to restrain the hand of the central bank.
Separately, it worth stressing that with the position of the Nigerian household sector
increasingly coming under strain recently thanks to, among other things, rising inflation and
unemployment – a development which may, at least in the short-term, get worse on the back of
the currency devaluation – there is a real risk that this could undermine popular support for the
Buhari government going forward, such that it negatively impacts the country’s political stability
and the prospects of much-needed reforms. Indeed, if recent opinion poll findings are anything
to go by, Buhari’s approval rating has fallen from around 80% at its peak (October 2015) to
around 64%, as at May this year. While this was to some extents expected, given the huge
scale of the challenges that he faces – ranging from tackling insurgency groups such as Boko
Haram and the energy crisis besetting the country – the reality is that, given the protracted
nature of some of these problems, if he continues to lose popular support, it will make the task
of addressing such problems that much more difficult to achieve.
Finally, in light of Nigeria’s currency devaluation, there is a fear in some quarters that this will
make the repayment of external debt more difficult. In this respect, while the growth in external
debt in recent years is certainly disconcerting, the point to note is that as a percentage of GDP
the country’s external debt remains manageable at around 5% (see Chart 5). Additionally, it is
also worth pointing out that – at around US$27bn – the country has sufficient FX reserves to
cover its short-term external debt1
by a factor of slightly over 2. Notwithstanding this, vigilance
is still required, as there has been increasing preference among Nigerian banks to engage in
1
According to IIF estimates this stood at almost US$13bn as at the end of 2015.
-10
-5
0
5
10
15
20
10 11 12 13 14 15 16
Real rates (Policy rate - CPI)
Policy rate
CPI (y/y)
(Source) Macrobond
(Year)
(%)
Chart 4: Inflation hovers above the policy rate with the result that
rates remain in negative territory on an inflation-adjusted basis
4. BTMU Economic Brief | July 20164
dollar denominated lending in recent years, a development which, under a weaker FX rate,
may over time bring loan deterioration, with higher system NPLs.
Concluding thoughts
We welcome the decision to devalue the naira last month and, if anything, feel that it was long
overdue, especially given the collapse in global oil prices which – under the Nigeria’s previous
pegged exchange regime – the country’s oil dependent economy has struggled to adjust to.
Also, Nigeria’s experience during the course of this year reveals all too clearly that, under such
an exchange rate arrangement, the need to defend the currency peg during times of
uncertainty can prove to be rather costly in terms of using up a country’s valuable foreign
exchange reserves. That said, we do not see the decision to move to a more flexible exchange
regime on the part of Nigeria as a panacea to all the country’s current economic and other ills.
For these to be addressed, the country’s president, Muhammadu Buhari – in keeping with his
campaign promises – still has the difficult task of rooting endemic corruption, restoring order to
the country’s public finances and defeating the threat posed by the likes of Boko Haram and
the Niger River Delta militants, which continue to destabilise the country and ultimately hold
back much-needed FDI into the country.
0
1
2
3
4
5
6
0
5
10
15
20
25
30
06 07 08 09 10 11 12 13 14 15
Total external debt (LHS)
As % of GDP
(Source) IIF
(Year)
(US$ billions) (%)
Chart 5: Nigeria's total external debt has been on the rise but as a
proportion of GDP it remains manageable
5. BTMU Economic Brief | July 20165
The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”) is a limited liability stock company incorporated in Japan and registered in the Tokyo
Legal Affairs Bureau (company no. 0100-01-008846). BTMU’s head office is at 7-1 Marunouchi 2-Chome, Chiyoda-Ku, Tokyo 100-8388,
Japan. BTMU’s London branch is registered as a UK establishment in the UK register of companies (registered no. BR002013). BTMU is
authorised and regulated by the Japanese Financial Services Agency. BTMU’s London branch is authorised by the Prudential Regulation
Authority (FCA/PRA no. 139189) and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential
Regulation Authority. Details about the extent of BTMU London branch’s regulation by the Prudential Regulation Authority are available
from us on request.
This report shall not be construed as solicitation to take any action such as purchasing/selling/investing in financial market products. In
taking any action, each reader is requested to act on the basis of his or her own judgment. This report is based on information believed to
be reliable, but we do not guarantee, and do not accept any liability whatsoever for, its accuracy and we accept no liability whatsoever for
any loss or damage of any kind arising out of the use of all or any part of this report. The contents of the report may be revised without
advance notice. Also, this report is a literary work protected by copyright. No part of this report may be reproduced in any form without
express statement of its source.
The Bank of Tokyo-Mitsubishi UFJ, Ltd. retains copyright to this report and no part of this report may be reproduced or re-distributed
without the written permission of The Bank of Tokyo-Mitsubishi UFJ, Ltd. The Bank of Tokyo-Mitsubishi UFJ, Ltd. expressly prohibits the
re-distribution of this report to Retail Customers, via the internet or otherwise and The Bank of Tokyo-Mitsubishi UFJ, Ltd., its subsidiaries
or affiliates accept no liability whatsoever to any third parties resulting from such re-distribution.