Ghana central bank raises its main policy rate to 21 pct

Ghana's central bank raised its main interest rate to 21 percent from 19 percent on Wednesday in the face of high inflation and fiscal pressures including weak revenue performance and rising debt-servicing costs.

The West African economy has grown rapidly in the last few years thanks to its exports of oil, cocoa and gold and its political stability.

But the government faces fiscal problems including a high budget deficit, rising inflation and a currency the central bank said fell 31.2 percent in the first 10 months of the year.

The government is holding talks with the International Monetary Fund aimed at securing a financial assistance programme to restore fiscal balance and restructure the economy.

CBN unveils N100 centenary commemorative bank note

 

 
THE Central Bank of Nigeria (CBN) yesterday unveiled the first digital N100 paper note to commemorate Nigeria’s Centenary.  The Apex bank governor, Mr. Godwin Emefiele, unveiled the new note during the weekly Federal Executive Council (FEC) meeting, which in his presentation showed enhanced security features.

The CBN boss during the presentation stated series of activities lined up for the eventual injection of the new note into circulation. The new note, which also has features for the visually impaired, is due to be officially issued into circulation on Friday December 19, 2014.

According to him, Wednesday, November 19 the notes are to be sent to banknote equipment manufacturers and other machine suppliers to enable them adapt to machines and authentication devices.

On the November 26, there will be a publication of the new N100 bank note to be sent by the CBN to commercial banks, chamber of commerce, Nigeria Police, cash in transit companies and others.

On Wednesday December 3, leaflets on the N100 bank note will be sent to 1, 000 Point of Sales (PoS) in the country, including a reminder about adapting machines and devices.  While on Wednesday December 17, a film showing how to check the new hundred naira bank note will go live on the CBN YouTube.

Explaining the features of the new banknote, Emefiele said the new note was designed with enhanced security to offer robust resistance against counterfeiting.

Nigeria share index down almost 1 pct as economic risks worry investors

 

Nigeria's main share index shed almost 1 percent on Thursday, ending a three-day rally as jittery investors worried about risks to the economy from a weaker naira, booked profits from the relatively liquid banking and oil stocks.

Stockbrokers said investors were taking a short-term view on equities as key macroeconomic issues such as falling global oil price and a weakening naira, persist. The all-share index fell 0.94 percent to 33,649 points at noon today.

Top tier lender United Bank for Africa (UBA) traded 8.91 percent down on heavy sell volumes with no bids, while oil major Seplat shed 5 percent.

Burundi’s inflation declines to 3.5 pct in October

 

Burundi’s inflation fell to 3.5 percent in the year to October from 5.5 percent in September, thanks to lower costs of housing, water and energy, official data showed on Thursday.

Price inflation for housing, water and energy eased sharply to 7.3 percent in the year to October from 12.4 percent in September, the Institute of Economic Studies and Statistics said in its monthly report.

The International Monetary Fund (IMF) predicts Burundi’s economy to expand by 4.7 percent this year against 4.5 percent in 2013, but fears the macroeconomic stability could be undermined due to an uncertain situation ahead of 2015 general elections amid increasing social and political tensions.

Nigeria c.bank asks lenders to bid for dollars in attempt to prop naira

 

Nigeria's central bank has asked 21 commercial banks to bid for $2 million each, as it did the previous day, selling dollars onto the foreign exchange interbank market to try to support the country's ailing naira currency.

Dealers said the currency weakened early on Thursday to a fresh intraday low of 173.95 naira per dollar before central bank intervened. It then recovered to 172.60 naira but was still down 2.85 percent from the previous day's close.

Despite interventions, the naira has continued to close well above the central bank's trade band of 150-160 - a range it burst out of in May and which appears to have become merely cosmetic.

Nigerian naira slips on strong foreign demand for dollars

 

Nigeria's Naira currency weakened slightly on the interbank market on Tuesday due to strong demand for dollars from foreign investors.

The local currency closed at 168.40 to the dollar, compared with 168.20 the previous day.

Traders said the central bank had intervened in the market to buy naira, providing some support, but not enough to lift the currency, adding that they said they expected the interventions to continue, and to provide dollar liquidity.

Traders also said two energy firms had sold dollars, but not enough to push up the naira. They said Saipem - a local unit of Italy's Eni - sold $10 million, while Chevron sold $45.5 million.

Nigeria's forex reserves hit 4-month low of $37.9 bln

 

Nigeria's foreign exchange reserves fell to a 4-month low of $37.9 billion as of Nov. 7, down 3.99 percent month-on-month after the central bank sold dollars to banks to prop up the value of the naira currency.

Data published by the central bank on Tuesday showed the reserves were at $39.55 billion on Oct. 10. In July they stood at $37.89 billion.

It would be recalled that Nigeria's central bank last week said it will continue to defend the local currency, which has fallen 6 percent so far this year on concerns about lower oil prices and an exit from the local debt and equity markets by offshore investors.