Nigeria Economic Update Issue 18
This economic update informs about the following matters relating to the Nigerian Economy. The first article is about the inflation rate, which continued its upward trajectory in the week under review. Specifically, the Consumer Price Index (CPI) increased by 1.39 per cent, from 11.38 per cent in February to 12.77 per cent in March, 2016. Remarkably, this is the highest rate since July 2012, representing a 4-year high. The significant crude Oil price increases are then discussed during the week under review. OPEC’s weekly basket price increased from $34.35 per barrel to $38.24 per barrel between April 8, 2016 and April 15, 2016, while Nigeria’s bonny light increased from $36.92 per barrel to $42.78 per barrel in the same period. Foreign Exchange Rates and Foreign Reserves. The Naira remained unchanged at both the official segment of the forex market (N197/$) and the parallel market (N323/$). In efforts to relieve the pressure faced by the Naira in the forex market, the CBN recently signed a currency swap deal of about RMB20 billion with the Industrial and Commercial Bank of China (ICBC). Stock Market - All-Share Index(ASI) and Market Capitalization depreciated by 2.40 % between April 8, 2016 and April 15, 2016. The ASI depreciated from 25,328.07 points to 24,719.27, while the Market Capitalization decreased from N8.71 trillion to N8.50 trillion within the same period. In particular, 25 out of 30 indices in the Nigerian Stock Exchange closed lower within the period.