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Rewane Says Nigeria Remains World’s Poverty Capital

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Rewane Says Nigeria Remains World's Poverty Capital

Bismarck Rewane, the Chief Executive Officer of Financial Derivatives Company Limited, has stated that Nigeria is still the world’s poverty capital even though her Gross Domestic Product (GDP) is rising and the inflation rate is dropping.

The highly-revered economic expert made this known in his presentation at this month’s edition of the LBS Breakfast Session.

Rewane, who’s a member of the Presidential Economic Advisory Council (PEAC), posed what he described as five tough questions for Nigerian policymakers.

“Cheery news and angry people! Why? (Why is GDP up and income levels down?). Beans 122.22 percent, pepper 100 percent, flour 61.54 percent but inflation is falling! Wow! What is the truth?

“The best hedge against inflation? Real estate/equities/bitcoin or precious metals? Will the naira crash to N600/$ as BDCs scramble? Is the PIA (Petroleum Industry Act) going to make things better for us? 1. Petrol 2. Insecurity 3. New investments,” he queried.

Recently, the National Bureau of Statistics (NBS) disclosed that the country’s GDP grew by 5.01 percent in the second quarter of this year (2021) as against 0.51 percent in Q1 while inflation dropped to 17.38 percent in July from 17.75 percent in June.

Fielding responses to his queries, Rewane explained that “fastest growing sectors were the most impacted by the COVID-19 pandemic. They are job-elastic and have the potential to boost productivity.

“Real GDP (2.7 percent) still below potential GDP (8.3 percent). The economy is still in a recessionary gap. Population (3.2 percent) growing faster than GDP.”

Citing data from the World Bank, Rewane said no less than seven million Nigerians fell into extreme poverty in 2020, adding, “Nigeria still the poverty capital of the world: 93.9 million people now live below the poverty line.”

According to him, people are angry because the socioeconomic conditions have worsened.

He added: “Youth unemployment fast approaching 45 percent. The misery index, 50.68 percent. Nigeria [is] a hunger alert hotspot, according to FAO and WFP. Over 18,000 Nigerians seeking asylum. Health sector brain drain rising (e.g. about 500 doctors moving to Saudi Arabia).

“Positive GDP growth yet to have a significant impact on socio-economic conditions. Strategic investment and increased stimulus in job-elastic sectors and elimination of leakages (misaligned exchange rate and subsidies) necessary to achieve sustained economic recovery and inclusive growth.”

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Economy

Dollar To Naira Exchange Rate Today (Wed. Sept. 28, 2022)

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Dollar To Naira Exchange Rate Today (Wed. Sept. 28, 2022)

Dollar to naira, on Wednesday, September 28, 2022, opened at (undisclosed) at the Investors & Exporters FX window ( I&E FX Window), where the currencies officially trade.

According to the data at the FMDQ Security Exchange where forex is traded officially, the dollar to naira exchange rate stood at (undisclosed).

This would mean that the Nigerian currency either gained or lose in value against the United States dollar, as foreign exchange (forex) trading closed at N431.33 per $1 on Monday, September 26.

How much is the dollar to naira at the black market today?

Going by sources at the Bureau De Change (BDC) in Lagos, dollar to naira last traded between N715 and N722 in the black market in the state.

It is however pertinent to note that the Central Bank of Nigeria (CBN) does not recognise the parallel market (black market), as it has directed individuals who want to engage in forex to approach their respective banks.

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Economy

CBN Increases Interest Rate For 3rd Time This Year

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CBN Increases Interest Rate For 3rd Time This Year

The policy-setting committee of the Central Bank of Nigeria (CBN) has raised the monetary policy rate (MPR), which measures interest rate, from 14 percent to 15.5 percent, the third consecutive increase in 2022.

In July, the apex bank raised the MPR from 13 percent to 14 percent to tame rising inflation.

MPR is the baseline interest rate in an economy, every other interest rate used within an economy is built on it.

Addressing journalists on Tuesday, September 27, after the committee’s meeting at the CBN headquarters in Abuja, Godwin Emefiele, governor of the apex bank, said 10 members of the committee voted for the rate hike.

The committee also raised the cash reserve ratio (CRR) to 32.5 percent from 27.5 percent. CRR is the share of a bank’s total customer deposit that must be kept with the central bank in the form of liquid cash.

He said the aggressive rate hike would shape the country’s economic growth.

According to him, the committee voted to retain the asymmetric corridor at +100 and -700 basis points around the MPR and liquidity ratio to a minimum of 32.5 percent.

“It was of the view that with the aggressive policy normalisation of the economies, losing the stance of policy will result in a sharp decrease of exchange rate leading to further hikes that will be afloat,” he said.

Also, it will help consolidate the impact of the last two policy rate hikes which is already reflected in the slowing growth rate of oil supply in the economy. We also understand that an aggressive rate hike will slow capital outflows and likely attract capital inflows and appreciate naira.

We will keep increasing the interest rate to reduce the high effect of inflation.

In August, Nigeria’s annual inflation rate climbed to a 17-year high of 20.52 percent as the high cost of food items continues to affect citizens.

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Economy

Dollar To Naira Exchange Rate Today (Tue. Sept. 27, 2022)

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Dollar To Naira Exchange Rate Today (Tue. Sept. 27, 2022)

Dollar to naira, on Tuesday, September 27, 2022, opened at (undisclosed) at the Investors & Exporters FX window ( I&E FX Window), where the currencies officially trade.

According to the data at the FMDQ Security Exchange where forex is traded officially, the dollar to naira exchange rate stood at (undisclosed).

This would mean that the Nigerian currency either gained or lose in value against the United States dollar, as foreign exchange (forex) trading closed at N431.33 per $1 on Monday, September 26.

How much is the dollar to naira at the black market today?

Going by sources at the Bureau De Change (BDC) in Lagos, dollar to naira last traded between N715 and N720 in the black market in the state.

It is however pertinent to note that the Central Bank of Nigeria (CBN) does not recognise the parallel market (black market), as it has directed individuals who want to engage in forex to approach their respective banks.

Continue Reading

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