The general overview of the Nigerian economy fluctuated across varying economic parameters for the week ended Friday, 7th March 2020. The Brent oil shed $2.33 per barrel to close at $48.27 per barrel while the OPEC Daily Basket Price went down by $0.15 Week-on-Week to close at $51.74 on Thursday, 5th March 2020, this was majorly due to the continuous spread of the Coronavirus (COVID-19) around the globe.
The Nigerian Naira returned to its more familiar ground, the Naira depreciated at the Investors and Exchange windows. The Naira shed N1.49 further to close at N365.83 after closing at N364.34 per USD the previous week.
The Nation’s local bourse Market Capitalization grew from N13.66 trillion to close at N13.69 trillion for the week. This is largely due to the improved performance of the NSE Premium Board and Main Board listed stocks and also the release of various companies Full Year and Q4 financial results for the year ended 2019.
Financial Metrics Nigeria reports that the Nigerian foreign reserves declined from $36.33bn to close at $36.24bn. The nation’s foreign reserves have been at a downward trend lately this is largely due to the Central Bank of Nigeria (CBN) policies to keep floating the naira at the foreign market and their strong stance not to devalue the Naira and reduction in the crude oil prices across varying daily crude oil baskets prices.
The Nigerian Gross Domestic Product (GDP) depreciated from 2.28% the previous week to close at 2.55% this week.
According to the latest CBN publication released earlier this week, the Purchasing Managers Index (PMI) also declined from 59.2 basis points recorded in the month of February 2020 to 58.3 basis points in March, 2020.
The Nation’s inflation rate for the month of March currently stands at 12.13% according to The National Bureau of Statistics (NBS) in the month of February this is against the 11.98% recorded the previous month.
The monetary policy committee reduced Interest rate from 14% to 13.50% according to the CBN latest publications. This will help to encourage the Small and Medium Scale Business (SMEs) to access credits facilities easily at a much-reduced rate while the Unemployment rate rose from 18.8% to close at 23.1%.
According to the Central Bank of Nigeria (CBN), the Currency in Circulation (CIC) also declined from N1.87 trillion to close at N1.89 trillion. This move by the CBN was targeted to mop up cash and reduce the nation’s inflation rate.
Nigeria’s Overnight rate advanced from 2% recorded earlier to close at 14.57% while the Open Buy Back (OBB) depreciated from 3% to close at 2%.