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Nigeria Week Ahead – Dollar & Naira In Focus  

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Written on 26/04/2022 by Lukman Otunuga, Senior Research Analyst at FXTM 

This could be eventful for the Nigerian economy despite the light economic calendar. 

Global sentiment remains gripped by inflation fears, global growth concerns, and geopolitical risks. As investors maintain a safe distance from riskier assets, this could impact emerging markets like South Africa and Nigeria. Already, global stocks have kicked off the week on a negative note as new Chinese lockdowns and fears of aggressive rate hikes leave market players on edge. This sense of uncertainty continues to empower the dollar, which has appreciated against every single G10 and most emerging market currencies today. As the dollar strengthens its grip on the FX space, the Naira could find itself under renewed pressure over the next few days.  

On the bright side, the International Monetary Fund (IMF) revised Nigeria’s growth forecast in 2022 to 3.4% from its earlier projection of 2.7% announced in January. Although the World Bank retained its growth forecast for 2.5% in 2020 it urged Nigeria to rethink its fuel subsidy regime and multiple exchange rates policies. All in all, Nigeria’s position as an energy exporter offered some protection against external risks, especially as inflation raged across the globe.  

Looking ahead, expectations for the next policy moves by major central banks remain a key theme across global financial markets with key economic data and events in focus. In regards to the dollar, it has appreciated against almost every single G10 currency year-to-date excluding the Australian dollar. It looks like everyone wants a juicy piece of the world’s most liquid currency thanks to rating hike expectations, its safe-haven nature, and rising Treasury yields. Fed hawks are certainly in the building with the Fed raising interest rates for the first time in three years back in March, and expected to raise rates by 50 basis points in May. 

There is a lot going on with the dollar with key economic data likely to inject the currency with renewed vigor. Over the next few days, US consumer confidence data, Q1 GDP, consumer sentiment, and the PCE deflator among other key reports will be published. Should they reinforce market expectations over the Federal Reserve aggressively raising interest rates, the dollar is set to appreciate further – pressuring emerging market currencies. 

Looking at the Naira, it opened at N588.00 per $1 at the parallel market today.

According to Bloomberg, the spot price of the Naira is at N415 with the I&E rate at $416. 

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Money Market

Fidelity Bank Announces 2nd Edition Of Fidelity International Trade And Creative Connect (FITCC)

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Fidelity Bank Records Stellar Performance in FY 2022

…takes trade expo to Houston, Texas, USA in October 2023

By Moninuola Sulaiman

Building on the resounding success of the maiden edition of the Fidelity International Trade and Creative Connect (FITCC) in London, UK last November, leading financial institution, Fidelity Bank Plc, has announced plans to host the second edition of the trade expo in Houston, Texas in the United States of America.

 

Tagged FITCC Houston, the event would hold on Wednesday, 18th, and Thursday, 19th October 2023 at the George R. Brown Convention Center, 1001 Avenida de las Americas, Houston, Texas 77010.

 

Situating the critical role FITCC plays in the bank’s export trade strategy, the Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe stated that, “Fidelity Bank is very much invested in supporting export trade and has consistently demonstrated this by the interventions and innovations that we bring to the space. Beyond the instrument of financing, some of our key interventions in the space revolve around business management capacity development with initiatives like the Export Management Programme (EMP) which we host in partnership with the Lagos Business School and the Nigerian Export Promotion Council (NEPC) and market access development initiatives like FITCC.”

 

To promote Nigeria’s non-oil exports and facilitate integrations to global supply-chain networks, FITCC Houston will host leading businesses, entrepreneurs, investors, and regulators operating in the commodity, service, creative, fashion, and FinTech sectors in Nigeria and the United States. The participants would explore partnership, co-creation, and foreign direct investment opportunities.

 

Participating businesses will benefit from curated market access engagements, investment and partnership opportunities, extended brand exposure before a global audience as well as speaking and networking opportunities amongst a long list of benefits in FITCC Houston.

 

Interested businesses and participants are encouraged to register for the conference at www.fidelitybank.ng/fitcc.

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Money Market

Stanbic IBTC Bank Updates Its Woman-Owned Account To include Male Signatory

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assured them of the firm’s unwavering commitment to providing the best custodial services

Rashidat Okunlade Writes

Stanbic IBTC Bank PLC, a subsidiary of Stanbic IBTC Holdings PLC and a leading financial institution in Nigeria, is thrilled to announce that its woman-owned business account, Blue Blossom account, can now be opened by female business owners who have male signatories.

This initiative is intended to foster gender equality while bolstering women’s financial empowerment and inclusion.

The Blue Blossom business account caters to the needs of women entrepreneurs and business owners throughout Nigeria. It offers them a remarkable opportunity to open and manage a business account with the added convenience of a designated male signatory. By implementing this unique feature, Stanbic IBTC Bank is taking bold steps to bridge the gender gap and promote equal representation in the business landscape.

The woman-owned account brings an array of exceptional benefits to its holders. One of its standout features is a zero-maintenance fee, providing cost-effective solutions that empower women to nurture their businesses efficiently. The account also includes complimentary online banking services, allowing holders to manage their finances and conduct transactions anytime, anywhere, conveniently.

Recognizing the crucial role of support networks in fostering women-owned businesses, Stanbic IBTC Bank has formed strategic partnerships with various esteemed business development agencies and organizations. Through these alliances, the bank aims to provide women entrepreneurs with valuable resources, mentorship programs, and networking opportunities, propelling their enterprises toward tremendous success.

“We are thrilled to unveil an account that enables women entrepreneurs to take charge of their finances and drive the growth of their businesses,” expressed Olajumoke Bello, Head, Enterprise Banking, at Stanbic IBTC Bank.

According to Olajumoke, “Stanbic IBTC remains resolute in its commitment to promoting financial inclusion and gender equality. The woman-owned account epitomizes our dedication to these values and shows our relentless support for women entrepreneurs.”

By introducing the woman-owned account, Stanbic IBTC Bank reaffirms its ongoing efforts to support women-owned businesses, foster gender equality, and stimulate economic growth across Nigeria. As a frontrunner in the financial sector, the bank is steadfast in its mission to deliver tailored financial solutions that address the unique challenges and aspirations of women entrepreneurs and business owners, ultimately empowering them to realize their full potential and achieve their business goals.

In a rapidly evolving world where inclusivity and equal opportunities are paramount, Stanbic IBTC Bank remains at the forefront, pioneering initiatives that break barriers and create a level playing field for women in business. The woman-owned account is just one of the bank’s innovative initiatives, embodying their unwavering commitment to shaping a future where women entrepreneurs can thrive and contribute significantly to the Nigerian economy.

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Money Market

NUBIFIE Picketing: Polaris Bank Restates Commitment To Staff Welfare

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Polaris Bank Commences Phase IV Breast Cancer Screening Exercise For Staff, Customers

By Moninuola Sulaiman

Polaris Bank has clarified that she did not violate any law in a recent disengagement of some staff which it said was done in line with the terms of the contract guiding their engagements

The Bank was reacting to a report of the picketing of its headquarters by NUBIFIE this morning by a section of the media.

The Bank disclosed that it has engaged and will continue to engage the union to resolve any lingering labour matters.

The Bank emphasized that a cordial relationship has existed between her and the union over the years and believes that concerns raised by either party can be effectively addressed through dialogue.

Polaris Bank remains committed to fostering a harmonious working relationship and ensuring the well-being of its employees.

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