Nigerians expect rise in inflation, borrowing rates – CBN report

...As apex bank injects  $210m into Forex to support naira

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Some Nigerians have projected a rise in inflation and borrowing rates as well as Naira appreciation in the next 12 months.

They gave the projection in the Central Bank of Nigeria 2018 fourth quarter Consumer Expectations Survey report released on its website.

According to them, the major drivers of the expected upward movement will be in prices of rent, food and other household needs, telecommunication, electricity, debt payment and purchase of house.

The survey, conducted between November 24 and December 7, 2018, covered a sample size of 1,770 households drawn from 207 Enumeration Areas across the country, with a response rate of 99.2 per cent.

It showed that in spite of the adverse projections, consumer overall confidence index improved in the fourth quarter of 2018, as more consumers were optimistic in their outlook.

“The index at 9.7 points was 8.7 points higher than the index in the corresponding period of 2017.

“Respondents attributed this favourable outlook to improved family income, family financial situation and economic condition.

“The consumer outlooks for the next quarter and next 12 months were positive at 33.2 points and 28.4 points, respectively, the survey said.

They said the outlook could be attributed to the expected increase in net household income, the anticipated improvement in Nigeria’s economic conditions and expectations to save a bit and or have plenty over savings in the next 12 months.

On the price changes outlook, the survey said most respondents expected prices of goods and services to rise in the next 12 months, with an index of 13.3 points.

 

 


…As apex bank injects  $210m into Forex to support naira

The Central Bank of Nigeria (CBN) has injected $210 million into the inter-bank segment of the Foreign Exchange Market to support the country’s local currency during the festive season.

Breakdown of the amount released by the CBN on Thursday, December 27, 2018, shows that the wholesale sector of the market received $100 million, while the Small and Medium Enterprises and invisible sectors each received $55 million.

Isaac Okorafor, CBN spokesperson said the forex intervention is in continuation of the apex bank’s resolve aimed at sustaining the high level of stability in the forex market and continually ease access to the currency by customers in the different sectors.

On Thursday, the naira gained N1 against the US dollar to close at N364 from N365 its exchanged during the Christmas period. The local currency closed N364.35 and N307 to a dollar at the Investors’ & Exporters’ FX Window and official markets respectively.

 

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