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The Nigerian government’s exchange rate of the naira to the dollar has appreciated by 1.25 per cent to $1.00 against N421.33 traded on Sunday.
The Naira appreciated so much against that particular day as many of our traders were anticipating the arrival of President Muhammadu Buhari for his inauguration in Abuja. They, therefore, expected the currency value to increase and hence, this was the reason why most of our investors were optimistic about the performance of the Naira to some extent, especially because it is expected to remain strong at its current level.
But then, what happened to the Naira yesterday? It didn’t depreciate like it did on another day. Many Nigerians were sceptical about the stability of the currency to start with. On one hand, with the election of an interim president being taken place tomorrow which will pave the way for President Buhari’s re-entrance into power, people expected them to have more confidence in him and with time, they are likely to be able to appreciate the Nigerian economy and their daily operations.
But then again, the COVID-19 pandemic has adversely impacted business activities that in turn had negative effects on trade that has affected the country. What was the impact of the exportation of goods by our businesses? And yes, many small scale enterprises are not going to perform well this year as compared with last year. So, you only need two things for your company or any other entity to thrive in this trying times: your stock and your goodwill. So, we expect the price of the Naira to continue fluctuating, and that is why if you want to do anything, you should consider moving your business overseas to avoid paying import taxes.
On the other hand, if you want all types of goods to come to Nigeria and export to other countries, you can still buy a vehicle. Naijanews you don’t need Naira to go and look for customers abroad to get you across borders. You just need to know how to use it in order to reach the destination. Therefore, we predict that the currency value of the Naira will continue fluctuating until there is a vaccine against the disease. Then, when that happens and everything settles down, the Naira will appreciate back to its previous levels. So, I think Nigerians now could see the end of this current depreciation, but even after that, the Naira will continue appreciating and staying strong in its status quo at the moment. But on the bright side, today’s appreciation against the USD is actually quite encouraging, and I think we can expect the same from Naira to become stronger than the US Dollar because of how good we have been doing with this virus.
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The Associated Press by Michael Obasanjo @MikeObasanjo
NANJIB, Jan. 12 (Xinhua) — A strong U.S. Dollar is currently making waves in global markets as investors eye opportunities for economic recovery in light of surging infections and deaths globally.
The latest figures released by U.S. Federal Reserve Chair Jerome Powell on Thursday also show the world’s largest central bank remains relatively accommodative at the moment, as demand for the safe haven asset outstrips supply, bolstering bets for further gains.
The index of 30-year Treasury Inflation rose to 0.87 percent during the final week of November from 0.82 percent in late October. That gives the S&P 500 inflationary expectations outlook for 2020 at 8.9 percent, up from 6.9 percent in October.
The Fed may keep tapering its massive purchases of bonds and equity throughout 2021 to support the struggling economy while keeping long-term inflation near target for 2 percent, though Powell said Wednesday’s monthly data would probably not provide much immediate insight into how soon the incoming Biden administration would adopt additional monetary policies.
“The recent surge in infections and hospitalizations around the globe could provide yet more reason for continued caution about the pace of the global economic recovery,” he said. “While these developments, particularly concerning new mutations of the coronavirus and related developments in many parts of the world, suggest the possibility of a temporary pause to the vigorous policy support that has underpinned world growth over the last 20 years, we should exercise considerable caution about how quickly the momentum of economic recovery can accelerate.”
The number of patients hospitalized with COVID-19 in the United States is projected to surpass 100,000 by month’s end, and more than 14 million cases have been reported. More than 237,000 Americans have died since the pandemic emerged some nine months ago, according to Johns Hopkins University statistics.
In Europe, Germany’s Robert Koch Institute (RKI), Britain’s Institute of Economic Affairs (IEA) and France’s National Council of Economy and Social Policy both forecasted average GDP growth of 4.9 percent in 2020 and 3.9 percent annually.
Also on Wednesday, German Federal Statistical Office released quarterly German housing prices data showing a slight decrease in the sales of non-landed homes in September at the second consecutive monthly reading newsone. However, higher real estate prices and weaker mortgage payments will make up the difference between lower sales and actual sales.
Germany´s Chancellor Angela Merkel said Wednesday that her party’s leadership expects the Federal Government, following the exit of coalition partners from the country´s 16 Federal Parliament seats, to meet the demands of workers in December.
Merkel had told media outlets earlier that under the circumstances there would be no guarantee that the outgoing lawmakers will not back off from demanding a comprehensive social safety net or that there would not be a strike.
“We are confident that in December the federal government will provide a full program for the protection of citizens and guarantee a high standard of living for everyone,” she said. Her statement came hours after she met the leaders of several parties who are part of the ruling bloc. The talks took place later on in Berlin and in Paris.
Meanwhile, French Prime Minister Jean Castex said the political situation in France “will stabilize,” noting that there was no fundamental change and that a general agreement will no longer exist. He said at a press conference Wednesday that the situation in France was stable.
He reaffirmed that there is no threat to the peace and stability in a country where half of France´s population lives. As a result, citizens will need to follow anti-COVID measures whenever possible but also take precautions to protect themselves.
“We are in contact with different countries across the continent in the fight against the spread of this fatal virus,” France´s leader said.
Castex added that despite the fatigue caused by a third wave of infections, the battle against the virus is far from finished. Just this week, in China, there was a record 19,076 new confirmed infections, more than double the national tally in April. Meanwhile, Turkey recorded 9,856 new confirmed infections on Wednesday, bringing the total number of infections to 45 million. Since February this year, the cumulative caseload in Turkey exceeds 400,000.
The Turkish Finance Ministry warned that the country´s economy is facing a severe recession with unemployment rate reaching almost 29% and rising inequality.
Turkey is among 15 Muslim nations, including Iran, Iraq, Lebanon, Palestine, Syria and Yemen, whose governments are negotiating the return of exiled journalist and filmmaker Kemal Batmazian on three separate occasions. According to reports, the negotiations are stalled due to disagreements over the size of the proposed contingent in relation to those already stationed in Istanbul and Ankara.
Turkish Foreign Minister Mevlut Cavusoglu said the process is necessary “to save lives, preserve life and to ensure that justice prevails.”
“We hope that the other religious states have the same moral courage as Turkey,” he said. “This is about saving human life, preserving human dignity. We have seen the suffering of millions of people, including children, women, men and old people who are at death’s door right now, who are vulnerable and who cannot go home, but still will die if they don´t have access to the medical care they need.”
German Federal Finance Minister Olaf Scholz and European Union chief Ursula von der Leyen on Wednesday were in close contact in Vienna.
“The EU´s top officials are continuing their consultations and discussions with their American counterparts,” Von Der Leyen tweeted.
The talks had been scheduled for at least the next few days. During meetings with U.S. Treasury Secretary Janet Yellen, European Commission President Ursula von der Leyen and European Central Bank President Christine Lagarde, the five concluded that the EU must take decisive action to address the crisis.
“More needs to be done,” the pair wrote in a joint letter to von der Leyen posted to their respective Twitter accounts. “Our decisions this week should be decisively aligned with our priorities, notably the preservation of lives and livelihoods in the face of the rapidly spreading Covid-19 pandemic.”
The joint communiqué noted that the EU’s economic and financial unity is threatened “by domestic populism and politics of fear” which will have consequences for public finances, employment and society.
“We therefore call for action to safeguard unity and cohesion in Europe, without forgetting the interests of our citizens,” the joint declaration added.
Von der Leyen urged a coordinated international response, including ensuring swift and effective testing and tracing, rapid tests and treatments, and the availability of vaccines, therapeutic drugs, medical devices and diagnostics.
