Intelpoint’s Post

The recent report from the Nigeria Bureau of Statistics on the nation's Balance of Trade for Q2-2024 comes with need to review the risks associated with the country's trades. Please visit the link below to read my opinion as published by Daily Trust Newspaper on the credit risk implications and mitigation strategies of the trade performance of the country for the period under review. https://lnkd.in/dfXK9Udj

In this chat with Samson G SIMON, Ph.D., CPLP, we looked beyond the announced surplus and asked questions like: - What factors are responsible for the high increase in export YoY? - How diversified is Nigeria's export? - When adjusted for inflation and currency devaluation, is there any significant change? - What's responsible for decline in Merchandise trade? - Should we celebrate reduced import or are there underlying unimpressive factors responsible for that? Follow link and enjoy. Let me get your thoughts too in the comment section. https://lnkd.in/dbHcXpAg

Nigeria's Q1 trade surplus showcases a significant increase, yet the country continues to heavily rely on oil exports. How can Nigeria accelerate diversification to boost non-oil trade? Meanwhile, US Markets are bracing for the May inflation CPI data and FOMC meeting and policy decision. In the UK, the FCA is introducing new rules to attract listings.... plus more valuable insights. #globalbusinessinsights #businessnews #business #globaleconomics #usfomc #federalreserve #usfed #Nigeriainflation #uscpi #nigeriacpi #nigeriatradesurplus #nigeriatradedataq1 #q12024tradenigeria # UKFCA #newlistingrulesuk

In its latest monthly economic publication, the Central Bank of Nigeria (CBN) revealed that the total value of Nigeria’s merchandise trade increased by a modest c.1% m/m to USD 7.8bn in Apr ’24. However, on a y/y basis, the merchandise trade value was -15% lower y/y due to a significant decrease (-32% y/y) in import trade value. The higher m/m trade value reflects increases in both export and import trade values. While export receipts increased mildly by c.1% m/m to USD4.9bn, merchandise imports rose by c.3% to USD2.9bn. As a result, the external trade position resulted in a lower net trade surplus of USD2.0bn in Apr ’24, compared with USD2.1bn the previous month. It is worth noting that the monthly trade performance data provided by the CBN is provisional and subject to revisions in subsequent reports. #FBNQuestResearch

#AFeatured #BGeneralNews Peru: Annual trade surplus reached US$18.027 billion in February 2024: LIMA, April 15 (NNN-ANDINA) — Peru’s trade balance accumulated a surplus of US$18.027 billion in the last twelve months as of February 2024, the Central Reserve Bank (BCR) reported. The result was higher than that reported in the previous month (US$17.909 billion). In monthly terms, Peru registered a surplus of US$1.351 billion last February, up […]

Economic, Policies, and Social Updates From The Villager E-paper Africa Advised to Ditch the US Dollar to Reduce Cross-Border Trade Costs In a recent interview with Bloomberg Africa, a Standard Bank Group analyst highlighted that intra-African trade could see significant improvements if African nations eliminate the US dollar from their cross-border transactions. Tunde Macaulay, head of business and commercial banking for Africa and offshore regions at Africa's largest bank, suggested that moving away from the dollar in trade settlements could save the continent up to US$5 billion in processing costs. A report from the Africa Export-Import Bank in 2022 revealed that more than 80% of cross-border payments from African banks are still cleared offshore, often through Europe or the United States. Only 16% of Africa’s trade occurs within the continent, compared to over 60% in the European Union, highlighting the high stakes of trade reform.

Global economic dynamics are shifting rapidly following the recent announcement of U.S. tariffs on Canadian, Mexican, and Chinese imports. These developments have sent ripples through global markets, triggering volatility in currency values, oil prices, and investor sentiment. For Nigeria, the implications are significant. The Central Bank of Nigeria’s (CBN) recent decision to raise interest rates now appears prescient. With oil prices facing potential instability and the naira under pressure from a strengthening U.S. dollar, the rate hike helps cushion the economy against external shocks. Higher interest rates support the naira by attracting foreign investments and help manage inflation risks from increased global import costs. In today’s interconnected world, global trade policies can have far-reaching consequences. The CBN’s proactive approach demonstrates a commitment to stability, ensuring Nigeria remains resilient amidst uncertainty. As businesses, investors, and policymakers navigate these complexities, the focus must remain on maintaining economic balance and fostering sustainable growth. #GlobalMarkets #CBN #NigeriaEconomy #InterestRates #OilPrices #CurrencyStability #EconomicResilience

Nigeria’s Trade With UK Drops By 25% Despite Naira Devaluation Nigeria’s trade with United Kingdom(UK) has plummeted by 25% in the first quarter of 2024 despite the higher value realised from the naira devaluation. This information comes from the recent foreign trade statistics report by the National Bureau of Statistics (NBS). The total trade between Nigeria and the UK dropped from N602.36 billion in Q1 2023 to N451.45 billion in Q1 2024. This represents a significant year-on-year decline. The quarter-on-quarter decrease is 14%, with total trade dropping from N522.79 billion in Q4 2023. https://lnkd.in/euAgvSfE #News #Trends #Trending #primebusinessafrica #fyp #Newsupdate #Latestnews #inflation #budget #money #family #finance #tips #viral #trending #socialmedia #nigeria #news #today #pba #africa

Pakistan's #trade deficit for April has surged by 2.81x YoY to $2.374 billion as compared to a deficit of $846 million recorded in April 2023, according to data released by the Pakistan Bureau of Statistics (PBS). On a monthly basis, the trade #deficit has widened by 3.16% MoM compared to a deficit of $2.3bn recorded in March 2024. Cumulatively in the ten months of fiscal year 2023-24 (10MFY24), the #negative trade balance reduced significantly by 17.09% YoY to $19.51bn as compared to a deficit of $23.54bn in 10MFY23.

https://lnkd.in/g_kXg6Hr Excellent Piece! 1) Daniel Wood, a portfolio manager at William Blair International, is among those who think this could be just the start of Turkey’s run. “If Turkey is successful in bringing inflation down meaningfully, then we are much closer to the beginning than the end of the lira having strong carry appeal for international investors,” he said. “The most important factor in driving the value of this trade is policy continuity.” 2) Bloomberg reported last week that Turkish officials are now studying easing restrictions on offshore currency swaps, lifting one major obstacle to attracting more foreign money into lira-denominated assets. The restrictions were imposed to prevent shorting of the currency, but have deterred foreign investment because they also make it more difficult to hedge against lira losses 3) On the other hand, an increase in long lira positions abroad in recent weeks has caused a divergence between onshore and offshore rates for borrowing liras, with offshore overnight rates dropping to around 30% — compared with the domestic yield of above 50%. That hurts the currency’s carry appeal, as lira carry traders abroad earn only about half what they would earn in Turkey.