Inflation down for the first time in Fifteen months, FX reserve improvement and exchange rate gaining traction as MPC kicks off it’s second meeting for 2017 . The missing piece is yet missing.

Good Morning and Happy new week.

The Nigeria Monetary Policy Committee (MPC) will commence its two day meeting today the 20^th of March 2017 through to tomorrow the 21^st of March 2017. This meeting will probably be the easiest meeting  of the committee in the recent past considering that it has recorded the best string of positive results on key economic data that measures the committee’s performance.

·         Inflation came down for the first time in fifteen months in the recently released CPI data for February 2017 to 17.785%.

·         Foreign Exchange Reserve strengthened  to $30.30billion

·       The Naira/$ has firmed up toN454 in the parellel market market that has experienced a seere volatility of the the past couple of years and has accounted for the exit of afaoreing Portfolio Investors (FOI) from the Nigerian Market.

·         Slow negative expansion in Gross Domestic Product (GDP)

CBN pumps fresh $180m into forex market

The Central Bank of Nigeria on Monday increased the liquidity in the foreign exchange market by releasing additional $180m for settlement of various transactions.

Naira trades flat, set for further gain

The naira closed flat at 445 against the United States dollar at the parallel market on Monday as the foreign exchange market awaits the further release of the greenback by the Central Bank of Nigeria.The CBN has sold additional $180m into the market this week, barely one week after selling about $600m. The steady supply of forex is in line with the modification made to the forex policy by the regulator.