Friday, 29 March 2019


Written by: Lukman Otunuga, FXTM Research Analyst
The Naira continues to experience stability despite an unexpected rate cut from the Central Bank of Nigeria earlier this week. This is highly encouraging and suggests that the currency has scope to appreciate if macroeconomic conditions in Nigeria stabilize further. With the jump in Brent Oil prices boosting government revenues and pushing foreign exchange reserves to $44 billion, the CBN has ammunition to defend the currency. However, external risks in the form of global growth concerns and trade developments could still create headwinds for the Naira further down the road. It must be kept in mind that the Naira is not alone, as many other emerging market currencies are also feeling the pressure.

Brexit stalemate deepens as Parliament rejects all alternatives
The drama, confusion and sheer uncertainty over Brexit intensified on Wednesday evening, after British MPs rejected all eight options aimed at breaking the Brexit deadlock.

With none of the indicative votes gaining a majority, the options in moving forward are becoming increasingly limited, with speculation in the air of a general election down the line. While MPs plan to trim the list of options and vote again on Monday, the clock is ticking with the risk of a no-deal Brexit rising by the day. Although Theresa May has pledged to stand down by May 22 if MPs back her plan, it remains uncertain whether Commons Speaker John Bercow will allow her deal to be brought forward for the third time on Friday. If May’s deal is rejected once again and Parliament is unable to agree on anything, the UK could slip into a no-deal Brexit which will have severe consequences on the British Pound.

Sterling tumbled on Wednesday evening as Brexit uncertainty haunted investor attraction towards the currency. However, looking at Sterling’s overall price action, it does feel like the risk over a no-deal Brexit is underpriced. The year-to-date uptrend for GBPUSD is still intact despite the twist and turns. There have been higher highs and higher lows so far in 2019 with prices trading around 1.3162 as of writing. While the GBPUSD has the potential to challenge the 1.3300 resistance, further gains beyond this point are likely to be limited by Brexit developments.

Have you heard this? Many Nigerian exporters have been defrauded of huge amount of money in the process of exporting commodities to foreign countries. Do you know why? They were not trained on export operations, management, documentations and the best methods of payment in export trade. This is terrible!!! Nigerians cannot continue to lose money to foreigners in the course of export business. Exporters, why don’t you get a practical manual that teaches the stages of export trade from processing and packaging of commodities to receipt of payment by the foreign buyers. It teaches export operations, export management, export documentations and methods of payment in export trade? It is a contemporary step-by-step guide to export trade. It tells all the contemporary dynamics in export trade. To get it, click on the link below:

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