FDC COMMODITY UPDATE – AUGUST 09, 2018

Dear Subscriber,

Nigeria’s gross external reserves ($46.76bn) has dipped below the psychological resistance level of $47bn. Higher interest rates in advanced markets resulting from the actions of the US Federal Reserve and Bank of England, together with elevated domestic political risks, are triggering a reversal of portfolio funds.  This could affect the CBN’s ability to support the naira in the future.

Nigeria has experienced deforestation on a large scale, with 57% of the country’s forests lost in the last 20 years. This is disturbing given the impact of climate change on agricultural production and food security. Higher temperatures and shifting rainfall patterns are expected to result in lower crop yields.

The attached bulletin addresses these and other issues in the domestic and global commodities market.

Enjoy your read!