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Strong Chinese refinery data support oil prices

Brent crude rose 2.81% to $75.26pb, driven by the surge in China’s refinery throughput to 62.0 million metric tons in May. The oil price rally was further exacerbated by a weaker dollar following the US Federal Reserve’s decision to pause rate hikes at its June meeting. The US dollar slid by 0.3% against major currencies on Wednesday, making oil cheaper for holders of other currencies.

CBN adopts a single exchange rate window

In a move to unify the exchange rates, the CBN has ditched the multiple exchange rate system and adopted a “willing-buyer-willing-seller” model. Announcing the adoption of a single exchange rate window, the Bank noted that exchange rate transactions, including government transactions, shall be consummated at the prevailing market rates and that the RT200 scheme ends June 30.

It is expected that the unification of the exchange rate would boost forex supply, government revenue, and investor confidence. However, this is not a silver bullet. The naira closed today at N756/$ in moderate trading at the parallel market.

These and other burning economic issues were discussed on the Business Morning programme on Channels TV today by our analyst Dumebi Oluwole.

Click the link to watch the video.

Enjoy your read!