Nigeria Economic Update Issue 11
This short article discusses the following issues. Firstly, it talks about the crude oil price and the crude oil market, OPEC’s weekly basket price increase by 1.07 % from $29.02 per barrel in February 19 to $29.33 per barrel in February 26. A combination of factors were responsible for the slight price increase. The next heading - Exchange Rates - At the parallel market segment of the foreign exchange market, the naira appreciated by 13.5 percent, from N370/$ on February 19, to N320/$ on February 26, 20163. Favourable demand and supply dynamics in the forex market, sustained appreciation of the naira against the dollar in the period. The next heading discusses the External Reserves which have increased slightly by 0.07 percent, from $27.79 billion on February 19th to $27.81 billion on February 26th, 20165. The increase in Nigeria’s external reserve balance was largely driven by the combination of higher crude oil prices and a stronger naira. The Stock Market is discussed next. The All Share Index (ASI) and Market Capitalization declined slightly by 0.8 percent to close at 24,228.79 points and N 8.34 trillion respectively at the end of February 26, 2016. The apparent decline of both indices during the period was largely driven by high volatility in the forex market, especially at the parallel market, as well as growing concerns about the extent of non-performing loans in the banking system.