Cash crunch over, but effects linger<\/strong><\/p>\nSimilar to the global trend, the monetary policy committee increased rates to 18%p.a., also fueling recession fears in the country. More so, the chances of oil prices falling on a global slowdown and its attendant impact on Nigeria\u2019s growth continues to hover around investor sentiments.<\/p>\n
More important is that cash is trickling back into the economy as old notes remain valid till year-end. As of February 2023, currency in circulation fell by 70% to \u20a6982 billion from \u20a63.3 trillion a year ago. More cash means rising demand as consumers are now financially equipped to purchase goods. While this could fuel inflation, the impact will be offset by an increase in output levels as businesses can also engage in transactions. The bad side, however, is that businesses are still reeling from the cash scarcity and it will take time for this to abate. In March, the Stanbic IBTC PMI fell further by 5.4% to 42.3 points, strengthening our position that growth in Q1\u201923 will slow to 1.25%.<\/p>\n
It\u2019s never over till it\u2019s over<\/strong><\/p>\nIt seems like all is well in Nigeria. There\u2019s cash, ATM queues are reduced, and the elections are over, somewhat. But it isn\u2019t all too well. The lack of trust in the political system has grown even more, foreign airlines are threating to quit on trapped funds ($802mn), and flight tickets are 23% more expensive as IATA rate has been adjusted to N561\/$ from N462\/$. All these will tell on the economy in the near term.<\/p>\n
We\u2019ll keep watching and providing in-depth analysis of the global, regional and domestic economies. But, like they say \u201cIt is never over until the fat lady sings<\/em>\u201d.<\/p>\nFor now, in the download, you can peruse the latest LBS Breakfast Session slides to see Bismarck Rewane\u2019s view on these latest events and their likely implications on your businesses and wallets in the next four weeks.<\/p>\n
Enjoy your read\u2026[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"
[vc_row][vc_column][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Dear Subscriber, The late NBA star, Kobe Bryant, once said that if you are afraid to fail, then you are…<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,13],"tags":[],"_links":{"self":[{"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/posts\/120728"}],"collection":[{"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/comments?post=120728"}],"version-history":[{"count":1,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/posts\/120728\/revisions"}],"predecessor-version":[{"id":120729,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/posts\/120728\/revisions\/120729"}],"wp:attachment":[{"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/media?parent=120728"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/categories?post=120728"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fdcng.com\/wp-json\/wp\/v2\/tags?post=120728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}