Breakfast Report - 28 August 2023
- The Central Bank of Nigeria (CBN) rolled out a series of fresh operational guidelines for forex sales by Bureau de Change (BDC) operators in the country. This is coming more than two years after the suspended CBN governor, Godwin Emefiele, announced the suspension of foreign exchange sales to BDC operators. Under the new framework, the spread on buying and selling by BDC operators is set to fall within a permissible range of -2.5% to +2.5% of the Nigerian foreign exchange market window’s weighted average rate from the previous day. While BDCs are critical in Nigeria’s operational FX framework, currency pressures may still exist due to low FX supply.
- Equity: Despite Friday’s rebound in the banking and oil & gas sectors, the indices closed the week in the red, while the consumer goods was the only major sector to close positive. We expect similar mixed sessions this week, as investors remain cautious in the market.
Fixed Income: The secondary market will remain driven by liquidity levels amid risk-off sentiments in the space. However, with GDP growth coming in stronger q/q, we expect this to elevate some sell-pressure that we have seen in the space, as we anticipate a positive reaction from domestic investors to the latest macroeconomic metrics for the country
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