Naira under pressure, banks withholding Dollar supply
ON APRIL 27, 20203:40 AMIN BUSINESS
By Babajide Komolafe
The decision of the Foreign Portfolio Investors, FPIs, to exit the country in the wake of the Coronavirus (COVID-19) pandemic as well as the huge decline in the price of crude oil in the international market have put severe pressure on both external reserves and the exchange rate.
As at last weekend, oil price lost for the third consecutive week on the back of declining global demand due to economic lockdown globally.
An agreement by major oil producers to reduce global output have failed to lift prices amid low storage concerns which hindered positive response in the global oil market.
Following this, Brent crude price declined 11.6% week-on-week to US$24.8/bbl. while Nigeria’s external reserves further declined 0.1% to US$33.6billion.
Source:
https://www.vanguardngr.com/2020/04/naira-under-pressure-banks-withholding-dollar-supply/
ON APRIL 27, 20203:40 AMIN BUSINESS
By Babajide Komolafe
The decision of the Foreign Portfolio Investors, FPIs, to exit the country in the wake of the Coronavirus (COVID-19) pandemic as well as the huge decline in the price of crude oil in the international market have put severe pressure on both external reserves and the exchange rate.
As at last weekend, oil price lost for the third consecutive week on the back of declining global demand due to economic lockdown globally.
An agreement by major oil producers to reduce global output have failed to lift prices amid low storage concerns which hindered positive response in the global oil market.
Following this, Brent crude price declined 11.6% week-on-week to US$24.8/bbl. while Nigeria’s external reserves further declined 0.1% to US$33.6billion.
Source:
https://www.vanguardngr.com/2020/04/naira-under-pressure-banks-withholding-dollar-supply/
