On SEC’s Circular
Following the Circular by Securities and Exchange Commission (SEC) here on April 8, 2021, The SEC is reminding participants and investors that only approved securities can be sold to the Nigerian public.
The Securities and Exchange Commission of Nigeria has issued a circular directing Investment Technology platforms to cease and desist from offering foreign stocks to Nigerians.
WHAT DOES THIS MEAN?
SEC Nigeria is reminding participants and investors alike that only approved securities can be sold to the Nigerian public.
In other words, foreign stocks such as Tesla Inc, Apple, Amazon, Google etc. which are currently not listed within Nigerian jurisdiction should not be offered to Nigeria-based residents and businesses.
WHAT HAPPENS NEXT?
The immediate next steps are yet to be officially announced.
IMF REVISES GROWTH PROJECTION FOR NIGERIA
In Q4 2020, the economy escaped recession evidenced by the 0.11% y/y rise in GDP. Last week, the International Monetary Fund (IMF) revised its Nigerian growth projection for FY 2021 from 1.5% to 2.5% in its World Economic Outlook.
According to the IMF, the improved optimism stems from the expectation that available vaccines would continue to quell the diverse mutations of the coronavirus, which had surfaced in different strains recently. The IMF also cited the effectiveness of policy support in the short to medium term.
Recall that the Nigerian economy closed FY 2020 in the negative (-1.8% y/y), having suffered consecutive growth contraction in Q2 and Q3 2020, leading to the economic recession. Worthy of note is that in Q4 2020, the economy surprisingly escaped recession evidenced by the 0.11% y/y rise in Gross Domestic Product (GDP) following the relaxation of the lockdown measures starting in July 2020.
AFRICA GETS SECOND $1 BLN COVID-19 LOAN FROM BRICS BANK
The New Development Bank of the BRICS group of nations has approved a second $1 billion loan to South Africa’s government to fight the COVID-19 pandemic, the bank said on Thursday.
“The loan will support the Government of South Africa in its efforts to contain the economic fallout of the pandemic and start economic recovery,” the bank said in a statement.
Last year, the NDB provided Africa’s most industrialized economy with a $1 billion loan to cushion the socio-economic impact of the pandemic.
South Africa’s 2021 budget presented in February forecast a record deficit of 14% of gross domestic product in the fiscal year that ended in March. read more
BRICS member states Brazil, Russia, India, China and South Africa set up the NDB to mobilize funds for infrastructure and development projects in their own countries and other developing nations.
***All Currency Rates, Fixings, Prices and Indices were obtained as of Value date, Thursday, April 9, 2021
***BDC Rates: (Bureau De Change)This refers to the FX rates obtainable for valid transactions at the Parallel market i.e Black Market or local Licensed BDC operators in Nigeria
I & E Rates: The Investors’ & Exporters’ FX Window (I&E FX Window) is the market trading segment for Investors, Exporters and End users that allows for FX trades to be made at exchange rates determined based on prevailing market circumstances, thus ensuring efficient and effective price discovery in the Nigerian FX market. The I&E FX Window was established by the Central Bank of Nigeria (CBN) via a circular dated April 21, 2017
NAFEX – (The Nigerian Autonomous Foreign Exchange Fixing) is the reference rate for Spot FX operations in the Autonomous FX Market which comprises recognized FX trading segments, including but not limited to the Inter-bank market, the I&E FX Window and any such approved and recognized trading segment as may be defined from time to time. NAFEX is used in daily valuation and settlement of the OTC FX Futures Contracts.
CBN Official Rate: This is the official rate at which direct transaction can be carried out with the CBN. This rate can only be obtained when direct deals or FX trades are done directly with the CBN
Sources: FMDQ, Flutterwave Treasury Team, Abokifx, Proshare,.Bloomberg.com, Reuters, Nairametrics, FMDQ, BusinessDay
Disclaimer- This report is based on information obtained from various sources believed to be reliable and no representation is made that it is accurate or complete. Therefore, all rates shown here are mark to market rates being published for guidance purposes only. Reasonable care has been taken in preparing this document. Flutterwave Technology Solutions Ltd shall not accept responsibility or liability for errors of fact or any opinion expressed herein. This document is for information purposes and private circulation only and may not be reproduced, distributed or published by any recipient for any purpose without prior written consent of Flutterwave Technology Solutions Ltd.