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Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 - Politics - Nairaland

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Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by postbox: 10:47am On Jan 18
Bismarck Rewane, Managing Director of Financial Derivatives Company Ltd and economist, painted a mixed picture of the economy yesterday, projecting that the Central Bank of Nigeria (CBN) will spend between $8 and $10 billion this year to defend the naira.
According to him, this would reduce the country’s gross external reserves to between $30 and $32 billion this year.

The gross reserves, which had been declining since the end of last year, reached $40.5 billion on January 11. Nigeria’s share of last year’s International Monetary Fund (IMF) special drawing rights (SDR) and Eurobond proceeds had shored up reserves, halting a tumbling era that began in 2020.

Rewane, speaking at the Nigerian-British Chamber of Commerce (NBCC) 2022 Economic Outlook, stated that the Central Bank of Nigeria (CBN) would not spend less than $8 to $10 billion to support the naira, which has been under renewed pressure at the Investors’ and Exporters’ (I & E) window.

According to the economist, the foreign exchange (FX) market may face pressure in the short term, as capital outflows are expected to increase. He, on the other hand, saw the effective exchange rate rising as the spread between the official and parallel market rates narrowed.

He went on to say that the market’s lack of “a rate-determining mechanism” has been a major challenge, and that he expects rate convergence to continue into the year.

According to him, global developments will influence the CBN’s policy direction, and the Bank will maintain its “adoption of its crawling peg strategy in a shift toward greater exchange rate flexibility.”

He forecasted that investment activity would suffer as a result of project delays, low real rates of return, and policy uncertainty, as travel restrictions, capital controls, and supply chain disruptions continue to limit business activity in the short term.

“In line with oil price movements and the hydrocarbons production outlook, foreign exchange earnings and fiscal revenues will recover slowly.” “Limited fiscal space, slow reform momentum, and political risks will prevent the business environment from rapidly improving,” he said.

He predicted that inflation would accelerate in the first half of the year before slowing, warning that it was not in the country’s best interests to continue producing data with flaws. He was perplexed as to how the country’s inflation could possibly be slowing when the global trend is the opposite.

Rewane stated yesterday during another economic outlook webinar hosted by First Bank of Nigeria Limited that last year was full of uncertainty and perplexity. He admitted that economic sustainability performed admirably last year.

Bisi Adeyemi, President and Council Chairman of NBCC, highlighted the challenges posed by an unstable global market, as well as the implications for Nigerian businesses.

“A major goal of hosting the 2022 Economic Outlook is to conduct a thorough assessment of the opportunities, challenges, and threats that businesses should expect to face this year.”

“I am sure that many of you, like me, would like to have a crystal ball to give you a sneak peek into what the year holds, and I would certainly like to know how the permutations of a pre-election year will impact the economic indices,” Adeyemi said.

In addition, the British Deputy High Commissioner, Ben Llewellyn-Jones, emphasized the two countries’ strong bilateral ties and the UK’s commitment to strengthening existing trade relations, including its continued support for Nigeria’s efforts to diversify its economy.

https://brandspurng.com/2022/01/17/rewane-central-bank-of-nigeria-will-spend-8-billion-this-year-to-defend-the-naira/

5 Likes

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Hisbah21(m): 10:48am On Jan 18
uhm my country

2 Likes 1 Share

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by nairavsdollars(f): 10:50am On Jan 18
Why Buhari is still retaining that dullard CBN Governor still amazes me

17 Likes 2 Shares

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Nobody: 11:10am On Jan 18
And the looting continues

41 Likes 3 Shares

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Nobody: 11:14am On Jan 18
I hope you are cashing out too sir?

No be to dey predict economic outlook everyday, when you can predict Chelsea and ManU with small money and win big.

2 Likes 2 Shares

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Coolsperm: 11:17am On Jan 18
The naira is just like local Yoruba musims no value

48 Likes 4 Shares

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by DaniDani(m): 11:43am On Jan 18
In which court?

1 Like

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Mko123(m): 12:07pm On Jan 18
Oshi
Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Anazp: 12:08pm On Jan 18
.
Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Brendaniel: 12:08pm On Jan 18
APC and witchcraft Economics

7 Likes 2 Shares

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Sonnobax15(m): 12:08pm On Jan 18
undecided
Another looting format angry

7 Likes 1 Share

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by fasho01(m): 12:08pm On Jan 18
Is it just me that isn't understanding

9 Likes 1 Share

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by kponkedenge(m): 12:08pm On Jan 18
They can pay me half that amount.... I'll defend it better.

25 Likes 2 Shares

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Righthussle: 12:09pm On Jan 18
T
Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Deliveryman44: 12:09pm On Jan 18
Yeye dey smell
Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Nobody: 12:09pm On Jan 18
Nonsense.......so naira is now defending her belt against who? Again pls

5 Likes 1 Share

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by obikiel(m): 12:09pm On Jan 18
funny country, How i wish i understood!

1 Like

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Righthussle: 12:09pm On Jan 18
H

1 Like 1 Share

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by baralatie(m): 12:10pm On Jan 18
nairavsdollars:
Why Buhari is still retaining that dullard CBN Governor still amazes me
He is the best you have for now
Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by DannyG8(m): 12:10pm On Jan 18
This country just useless

3 Likes 1 Share

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by NwaNimo1(m): 12:11pm On Jan 18

4 Likes

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by wiringdpt(m): 12:11pm On Jan 18
2022 and you guys are still doing this to each other on nairaland, your lives must be pathetic
Coolsperm:
The naira is just like local Yoruba musims no value

5 Likes 1 Share

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by obembet(f): 12:11pm On Jan 18
N
Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by aribisala0(m): 12:11pm On Jan 18
They are not "spending"

It means they will exchange that for Naira.(buy naira)

The Naira is essentially a DEBT of the CBN so n effect they are redeeming their debt

The more demand there is for naira the higher its "value"
So the CBN is moving money from one account to another

4 Likes 1 Share

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by abduljubril: 12:12pm On Jan 18
You don use ur brain drink gari
Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Kenneth10110(m): 12:13pm On Jan 18
.[color=#000000][/color]


Tinubu is going nowhere wink
Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by money121(m): 12:13pm On Jan 18
Ok
Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by baralatie(m): 12:14pm On Jan 18
aribisala0:
They are not "spending"

It means they will exchange that for Naira.(buy naira)

The Naira is essentially a DEBT of the CBN so n effect they are redeeming their debt

The more demand there is for naira the higher its "value"
So the CBN is moving money from one account to another
The cbn is spending big time

3 Likes 1 Share

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by Nobody: 12:15pm On Jan 18
how that one come reduce the price of rice and beans in the market

2 Likes 1 Share

Re: Central Bank Of Nigeria To Spend $8 Billion Defending The Naira In 2022 by AFvckingAlpha(m): 12:15pm On Jan 18
If CBN nah defender then we fit relate the agency to Harry Maguire.

Expensive but ineffective!

Pussy ass defenders! economic environment is not favorable at all.

I said what I said

3 Likes 1 Share

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