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Inflation Hits 11.28% In November, Says NBS |The Republican News

Inflation notches up to 11.28% in November, says NBS

“The urban inflation rate increased by 11.61 percent (year-on-year) in November 2018 from 11.64 percent recorded in October 2018…”

Isaac Anumihe, Abuja

National Bureau of Statistics (NBS) has said that inflation rate in November has moved up to 11.28 percent, 0.02 percent points higher than the 11.26 percent rate recorded in October 2018.

Recall that the inflation rate dropped to 11.26 percent in October from 11.28 percent in September because food prices had a negative inflation between September and October 2018.

But in a statement, at the weekend in Abuja, NBS said that in November, increases were recorded in all classifications of individual consumption according to Purpose (COICOP) divisions that yielded the headline index.

“As regards month-on-month basis, the headline index increased by 0.80 percent in November 2018, up by 0.006 percent points from the rate recorded in October 2018 (0.74) percent. The percentage change in the average composite Consumer Price Index (CPI) for the 12 months period that ended in November 2018 over the average of the CPI for the previous 12 months period was 12.41 percent, showing 0.37 percent point decline from 12.78 percent recorded in October 2018.

“The urban inflation rate increased by 11.61 percent (year-on-year) in November 2018 from 11.64 percent recorded in October 2018, while the rural inflation rate increased by 10.99 percent in November 2018 from 10.93 percent in October 2018. On a month-on-month basis, the urban index rose by 0.83 percent in November 2018, up by 0.07 from 0.76 percent recorded in October 2018, while the rural index also rose by 0.78 percent in November 2018, down by 0.06 percent from the rate recorded in October 2018 (0.72 per cent). The corresponding 12-month year-on-year average percentage change for the urban index was 12.83 percent in November 2018. This is less than 13.21 percent reported in October 2018, while the corresponding rural inflation rate in November 2018 was 12.05 percent compared to 12.42 percent recorded in October 2018,” NBS said.

The CPI measures the average change over time in prices of goods and services consumed by people for day-to-day living.    (The Sun)

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World Bank Blames Nigeria’s Forex Crisis On Fixed Exchange Rate

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Currency notes

Everest Amaefule, Abuja

The World Bank has blamed Nigeria’s enduring foreign exchange instability on the fixed exchange regime in the official forex market.

In a publication on African economies titled: ‘Africa’s Pulse,’ the World Bank singled out Nigeria and Angola as two countries that had yet to experience stability in the forex market despite rebound in the prices of commodities being exported.

The report stated, “The rebound in commodity prices and improved growth prospects in some countries have helped stabilise commodity exporters’ currencies.

“However, with the Nigerian naira and Angolan kwanza remaining fixed against the US dollar, the imbalance in the foreign exchange market remains substantial in both countries.”

The report also mentioned Nigeria as one of the countries in the region where there were substantial risks in the banking sector due to a number of factors, including non-performing loans and policy uncertainties.

The World Bank said, “Banking sector vulnerabilities remain elevated in the region, including in Angola, CEMAC countries, the Democratic Republic of Congo and Nigeria. Foreign exchange restrictions, policy uncertainty and weak growth have affected the soundness of the banking sector.

“Non-performing loans have increased, and profitability and capital buffers have decreased. Several proactive measures have been introduced to contain risks to financial stability, including through increased provisioning and by intensifying monitoring and supervision of banks.”

On inflation, the report stated that although inflation remained very high in the region, it had started to ease but singled out Nigeria and Angola as two countries where inflation was rising as a result of the depreciation of currencies in the parallel exchange market.

The report added, “Inflation in the region is gradually decelerating from its high level in 2016 but remains elevated. Although a process of disinflation has started in Angola and Nigeria, inflation in both countries remains high, driven by a highly depreciated parallel market rate.

“Inflation eased in metals exporters, because of greater currency stability and lower food prices due to improved weather conditions.”

The National Bureau of Statistics, however, reported that inflation in the country had continued to increase until it reached a peak in January.

According to the NBS, the inflation rate reduced from 18.72 percent in January to 17.78 percent in February. By March, it further went down to 17.26 per cent. The inflationary figure for April has yet to be released by the bureau.   (Punchng.com)

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Nigeria Will Exit Recession Within The Last Three Months Of This Year – Emefiele

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Governor of Central Bank of Nigeria, Mr Godwin Emefiele

Leke Baiyewu, Abuja

The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, has said that with the current efforts by the Federal Government to revive the country’s economy, the country should be out of recession by the third quarter of this year.

Emefiele also said the CBN would continue with its intervention in the foreign exchange market, adding that efforts by the apex bank so far had been yielding positive results.

He added that the country had started to see a downward trend in the prices of commodities, indicating a reduction in the rate of inflation.

“We are very much optimistic that by the end of the second quarter, or latest the third quarter, we should be out of recession that we are in right now,” he said.

The CBN governor said these after meeting with the leadership of the Senate in Abuja on Tuesday.

In attendance at the closed door meeting were the President of the Senate, Bukola Saraki; and Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Rafiu Ibrahim.

Emefiele, while briefing journalists after the meeting, said discussions were held between the apex bank and the legislature on the current state of the economy.

He said, “Actually, the Senate President invited us to come and brief the Senate leadership in a closed session and to provide some updates on the foreign exchange markets. You would have observed that in the last two months, the central bank has been involved in some form of intensive intervention in the foreign exchange market and this has fortunately resulted in a downward trend in the parallel market price of foreign exchange, from as high as N525 to a dollar to as low as N370.

“Right now, it hovers between N370 and N380. I think it’s an opportunity for me to say that we are going to continue this intervention because the reserves look very good. As I speak to you, our (external) reserves stand at above $31bn and that provides us enough of firepower or ammunition to be able to defend the currency, and we will do so with all intensity to ensure that foreign exchange is procured by everybody.

“If you want to import raw materials, you will get foreign exchange; you want to import plant and equipment, you will get foreign exchange; you want to pay school fees or you are a small business that wants to buy foreign exchange for you to import your small items, you will procure foreign exchange.”

Emefiele recalled that the CBN had last week announced a policy to encourage foreign investors in the country’s forex market.

He said, “It is the market or window that is opened for them to bring in their foreign exchange and come into the market on what we call a willing-buyer, willing-seller basis, in which case there will be no form of any price intervention by anybody, including the Central Bank of Nigeria.

“Indeed, with the kind of firepower that we have, we are also going to play in that market to ensure that as the prices move on based on the managed float regime that we run, we should be able to control the price based on the willing-buyer, willing-seller basis.”

In his remarks, Ibrahim said the meeting was part of the engagements between the legislature and the executive.

He stated, “As usual, the leadership of the Senate is always engaging the most important sectors of our economy. So, we had a discussion with the Senate President and the (CBN) governor and they were briefed just like he (Emefiele) has given you an overview of the briefing.

“We have proffered more solutions, which will result in more policy directions very soon, because the major reason is for us to attract foreign direct investments so that the watchers, that is, the reserves, and the monetary aspect of the economy will be intact and the intervention will be sustainable.

“So, we are happy with what they (CBN) are doing and we have been able to proffer more solutions as usual and more suggestions. We are hopeful that by the grace of God, we will be able to sustain working together.”   (Punchng.com)

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