Investors torn between debt, forex market as naira weakens

With warnings of imminent recession, the parallel market has continued to witness demand pressure from individuals seeking to hedge their investments and organisations struggling to settle their foreign exchange obligations, having been shut out from the official window.

The nation’s first quarter revenue from crude sales was N940.9 billion , missing its target by 31 per cent due to the oil price crash, Finance Minister Zainab Ahmed revealed. Analysts attributed the driver of the reserve accretion to the inflow of Rapid Financing Instrument facility from the International Monetary Fund which continues to outweigh forex outflows.

At the NTB segment, the average yield contracted by 11bps to 2.2per cent due to piqued investors’ interest following improved rates in the space Some analysts expect better appetite in the treasury bills market next week, supported by improved system liquidity and better offers on treasury bills papers.

“In the NTB segment, we expect the focus to be shifted to next week’s PMA. While there is no indication of the amount to be offered, we expect a similar result from the last NTB PMA. Meanwhile, despite the coronavirus- induced economic downturn, the nation’s GDP grew by 1.87 per cent in real terms in Q1 of 2020. But stakeholders have warned of imminent contraction in growth in Q2 due to the lockdown measures put in place during the quarter.

She re-affirmed this statement last week, after the National Economic Council meeting, saying that the NBS data showed that the economy would go into a recession at an average of -4.4 per cent. According to the NBS report, Nigeria’s oil sector recorded a real growth rate of 5.06 per cent in Q1 2020, indicating an increase of 6.51 per cent points relative to the rate recorded in the corresponding quarter of 2019 .

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Equities market’s bullish streak raised investors’ gain to N694bnThe equities market reversed the loss from the previous week following a bullish streak on all trading sessions last week despite mixed Q1 earnings reports by listed entities. Market capitalisation… Refer and Earn Through Opay Chipper Cash. Kindly Join My WhatsApp Group to Learn The Process on How to Begin Earning With your Smart Phone 😊😊
Source: Daily Trust - 🏆 13. / 51 Read more »

How coronavirus impacts buyers in real estate market | The Guardian Nigeria News - Nigeria and World NewsNotwithstanding the positive outlook for the Nigerian property market in 2020, the COVID-19 pandemic has impacted negatively on the market, leaving property investments in disarray. Can I join your real estate company.
Source: GuardianNigeria - 🏆 1. / 94 Read more »