Zimbabwe’s central bank has reportedly allowed its gold-backed currency to depreciate by over 40% against the US dollar on Friday.

This development is part of the Reserve Bank of Zimbabwe’s (RBZ) efforts to stabilize the economy and address persistent exchange rate instability since the ZiG currency, short for Zimbabwe Gold, was introduced in April.

The central bank’s website gave the mid-rate for the ZiG currency as 24.3902 to the dollar on Friday versus 13.9987 on Thursday, a 42.6% fall, according to Reuters calculations.

In response to the currency devaluation, the central bank also raised its policy rate from 20% to 35% to manage inflation and stabilize prices with immediate effect.

The Reserve Bank of Zimbabwe said in a statement that its Monetary Policy Committee (MPC) met on Friday and decided to allow greater exchange rate flexibility.

The central bank said; “The MPC is convinced that the above measures will go a long way in addressing the emerging exchange rate risks, anchor the inflation expectations and stabilise prices in the near to short term.”

Bloomberg News previously reported that Zimbabwe had devalued the ZiG by 44%, citing treasury dealers.

The apex bank, Governor John Mushayavanhu, had also said it was taking steps, to combat inflation, including allowing “greater exchange rate flexibility, in line with the increased demand for foreign currency in the country.”

The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, says the lifting of petroleum products from the Dangote Refinery will moderate foreign exchange demand pressures.

Cardoso who said this on Tuesday in Abuja, while presenting a communique from the apex bank’s 297th Monetary Policy Committee meeting, said that it would also moderate transportation costs, thereby easing food prices.

“The committee expressed optimism that the lifting of refined petroleum products from Dangote refinery will moderate transportation costs and significantly support the easing of food price pressures in the short to medium term.

This is also expected to moderate foreign exchange demand for the importation of refined petroleum products, with a positive spillover on external
reserve and improvement in the overall balance of payment position,” he said.

Cardoso also said that an assessment of the performance of Nigeria’s financial institutions indicated that they were stable.

“Members assessed the performance of key financial soundness indicators and noted with satisfaction that inspite of familiar headwinds, the banking industry
remains safe, sound, and stable.

“The Committee, however, emphasised the
need to sustain supervisory oversight on the industry to strengthen its continued support to the economy,” he said.

On food inflation, Cardoso said that the upside risks remained flooding, hike in energy prices,
scarcity of petrol and most importantly, insecurity in farming communities.

He said that, considering the weight of food in the Consumer Price Index (CPI) basket, the MPC recognised the efforts of the Federal Government to address insecurity in farming
communities.

He stressed the need to remain steadfast.

” In addition, the MPC applauded the ongoing effort of the Federal Government to bridge the food supply deficit through the duty-free import window for food commodities,” he said. 

The Bank of Nigeria (CBN) Monetary Policy Committee (MPC) has increased the interest rate by 50 basis points, bringing it to 27.25 percent. This marks the fifth consecutive hike since February 2024.

CBN Governor Olayemi Cardoso announced the decision during a press briefing at the conclusion of the 297th MPC meeting in Abuja on Tuesday. Additionally, the Cash Reserve Ratio (CRR) was raised by 50 basis points, from 45 percent to 50 percent for Deposit Money Banks (DMBs), and from 14 percent to 16 percent for Merchant Banks. The Liquidity Ratio (LR) remains unchanged at 30 percent, with the Asymmetric Corridor maintained at +500/-100 basis points around the MPR.

Economist Muda Yusuf, Executive Director of the Centre for the Promotion of Private Enterprise, had previously called on the CBN to halt further interest rate increases.

Since February 2024, the CBN has implemented four rate hikes, moving the interest rate from 22.75 percent to 26.75 percent. Prior to Governor Cardoso’s appointment in September 2023, the interest rate stood at 18.75 percent.

Opening the week’s trading, the Nigerian Exchange Ltd. (NGX) market capitalisation advanced by N79 billion or 0.14 per cent to close at N56.536 trillion, from an opening of N56.457 trillion.

The All-share Index also added 0.14 per cent or 139 points, to close at 98,386.60 points, against 98,247.99 posted on Friday.

As a result, the Year-To-Date(YTD) return increased by 31.58 per cent.

Investors’ rally in the stocks of FBN Holdings, United Bank of Africa(UBA), Fidelity Bank, alongside, Nigeria Breweries and Transnational Corporation, among other advanced equities, drove the market’s positive performance.

The market breadth closed positive with 32 gainers and 20 losers on the floor of the Exchange.

On the gainers’ chart, FCMB and McNichols led by 10 per cent each to close at N8.89 and N1.87 per share respectively.

Fidelity Bank followed by 9.93 per cent to close at N14.95, Tantalizers gained 9.84 per cent to close at 67k, while Flour Mill increased by 9.81 per cent to close at N55.40 per share.

Conversely, Berger Paints led the losers’ chart by 9.83 per cent to close at N21.10, Daar Communications trailed by 9.33 per cent to close at 68k per share.

Deap Capital Management and Trust Plc lost 9.09 per cent to close at 90k, Secure Electronic Technology Plc dropped 7.46 per cent to close at 62k per share.

Honeywell Flour also declined by 5.12 per cent to close at N4.63 per share.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 18.06 per cent.

A total of 810.43 million shares valued at N8.29 billion were exchanged in 10,669 deals, compared to 554.22 million shares valued at N10.12 billion traded in 8,670 deals reported in the previous session.

Meanwhile, Mecure led the activity chart in volume and value with 400.08 million shares valued at N2.78 billion.

In its market review and outlook, Analysts at Cowry Asset Management Ltd., anticipated continuous bullish sentiment in the new week, with the market displaying resilience amid positive macro signals.

They said that this would be driven by portfolio rebalancing and strategic positioning in value-driven stocks.

According to the analysts, the recent dip in inflation and favorable quarter-end activities suggest that investor optimism may persist, creating entry
opportunities for those seeking fundamentally sound investments.

“However, we advise caution as market volatility remains a key factor.

“Investors should maintain a focus on quality stocks with strong growth prospects to navigate potential swings effectively,”

The United States Chamber of Commerce has expressed its willingness to invest about 320 million dollars in mortgage refinancing and Small and Medium Enterprises (SMEs) in Nigeria.

This is contained in a statement issued by the spokesperson of Vice-President Kashim Shettima, Mr Stanley Nkwocha.

Ms Nisha Biswal, the Deputy Chief Executive Officer of the U.S. International Development Finance Corporation, made this known on Monday.

The News Agency of Nigeria (NAN) reports Biswal spoke at a US-Nigeria Executive Business Roundtable hosted by the US Chamber of Commerce as part of activities at the ongoing 79th Session of the United Nations.

She explained that with a portfolio of one billion dollars, the chamber would invest 200 million dollars in mortgage refinancing in Nigeria.

” Also the sum of 100 million dollars has been earmarked for FCMB to finance SMEs in Nigeria, with particular interest in women empowerment.

” The US Chamber of Commerce also announced that 20 million dollars has been approved for a firm, Robust International, for processing of cashew nuts in Nigeria.”

Biswal emphasised that the American Chamber remained committed to working with Nigerians in the development and pursuit of sustainable economic policies.

Responding, Vice-President Shettima, who is leading the Nigerian delegation at the ongoing United Nations General Assembly (UNGA), reiterated President Bola Tinubu’s commitment to investor-friendly policies.

” I urge you to give Nigeria the benefit of the doubt. The current administration led by President Bola Tinubu is the most investor-friendly administration in the history of Nigeria.

” When fuel subsidy was an albatross around Nigeria’s neck, President Tinubu, from day one, hit the ground running by withdrawing the fuel subsidy and unifying the multiple opaque foreign exchange markets.”

Earlier, the Minister of Foreign Affairs, Amb. Yusuf Tuggar, led other members of the delegation to brief the Vice-President on the activities and itinerary lined up for him in New York.

Tuggar, while outlining the programmes and activities, said that the Vice-President was expected to deliver President Tinubu’s national statement at the General Debate of the UNGA.

He added that apart from President Tinubu’s national statement delivery, Shettima is also expected to meet with the Secretary General of the United Nations.

Similarly, aside other heads of states lined up to meet with the Vice-President, there are also scheduled meetings with the head of the African, Caribbean and Pacific States.

Shettima will also meet with the President of the World Trade Organization (WTO), Dr Ngozi Okonjo-Iweala; Director-General of the International Atomic Agency, and multinational companies, among others.

Also on the itinerary of the Vice-President is a meeting with the Bill and Melinda Gates Foundation and a host of other international partners. 

The Nigerian Railway Corporation (NRC) has recorded a growth of 45.38 per cent in passengers who travelled through the rail in second quarter of 2024.

  This data was released by the Nigerian Bureau of Statistics (NBS) in its Rail Transportation Data (Q2 2024) released at the weekend. 

  In Q2 2024, a total of 689,263 passengers travelled via rail system relative to 474,117 reported in the corresponding quarter of 2023, indicating a growth rate of 45.38%.

 The NRC also in terms of revenue generation, N1.69 billion was received from passengers during the reference period, showing an increase of 53.14 per cent from the N1.10 billion recorded in the same quarter of the previous year. 

  The volume of goods/cargo transported via rail in Q2 2024 stood at 143,759 tons compared to 56,936 tons recorded in Q2 2023. 

  In the quarter under review, the NRC reported an additional volume of goods/cargo transported via pipeline which stood at 5,940 tons, higher than 2,856 tons in Q2 2023.

  Similarly, N537.36 million was collected from goods/cargo con veyed via rail in Q2 2024, up by 206.68 per cent from N175.22 million received in Q2 2023.

   In addition, revenue generated from the movement of goods/cargo via pipeline stood at N42.08 million in Q2 2024, higher than the N12.81 million reported in the corresponding period of last year. 

  Other receipts amounted to N994.68 million, indicating an increase of 5,206.68 per cent in Q2 2024 from the N18.74 million received in Q2 2023.