Read on Twitter
1. Some hard truths that is happening in our country. I will explain in layman terms under this tweet.
Policy Rate remains static at 11.50% as at Jan 2021
Cash reserve ratio remains static at 27.50% at at Jan 2021
Real GDP growth rate fell to 3.62 from 6.10% as at Q3 2020
Policy Rate remains static at 11.50% as at Jan 2021
Cash reserve ratio remains static at 27.50% at at Jan 2021
Real GDP growth rate fell to 3.62 from 6.10% as at Q3 2020
2. YoY inflation increased to 16.47% from 15.47% as at Jan 2021 (The 17th consecutive increase and highest since April 2017)
FX reserves fell to $35.63bn from $36.35bn as at Feb 15th 2021
Brent crude price increased to $63.03/bbl from $56.69/bbl as at Feb 15th 2021 (good news)
FX reserves fell to $35.63bn from $36.35bn as at Feb 15th 2021
Brent crude price increased to $63.03/bbl from $56.69/bbl as at Feb 15th 2021 (good news)
3. Now let me explain... The country has experienced a consistent decline in FX reserves.
This is because there is a huge demand for the $. We import everything, we don't produce anything
Everyone wants $, CBN takes from the reserves and floods the market to satisfy that demand
This is because there is a huge demand for the $. We import everything, we don't produce anything
Everyone wants $, CBN takes from the reserves and floods the market to satisfy that demand
4. A time will come when CBN will get to a point of less comfort with the excessive withdrawal from the reserves and allow forces of demand and supply determine exchange rate.
This will cause increase in exchange rate. It might reach N500 to $1
Now I mentioned increase in brent
This will cause increase in exchange rate. It might reach N500 to $1
Now I mentioned increase in brent
5. This increase will give FG more FX which will help budget implementation, borrowing will reduce (hopefully) and FX reserves goes up.
Now the elephant in the room... Inflation.
Causes include
A. Massive insecurity especially in the North (bandits etc)
B. Border closure
Now the elephant in the room... Inflation.
Causes include
A. Massive insecurity especially in the North (bandits etc)
B. Border closure
6. What can be done?
I AM COMING FIRST. LET ME DRINK WATER.
I AM COMING FIRST. LET ME DRINK WATER.
7. I AM HERE
We need to improve infrastructure so we can be a manufacturing country.
We need to drastically improve security for our farmers so output can be boosted.
We need to exploit the increase in crude prices to improve infrastructure for manufacturing
THANK YOU.
We need to improve infrastructure so we can be a manufacturing country.
We need to drastically improve security for our farmers so output can be boosted.
We need to exploit the increase in crude prices to improve infrastructure for manufacturing
THANK YOU.
