By Chico Mies The confrontation between Leonidas and Xerxes in 300 and the ongoing political crisis in Rivers State share striking thematic similarities, particularly in the struggle between power and resistance. Leonidas’ quote: “The world will know that a free man stood against a tyrant. That few stood against many. And before this battle was over, even a god-king can bleed.” resonates deeply with the current standoff in Rivers State, where Governor Siminalayi Fubara finds himself at odds with the federal authority following President Bola Tinubu’s declaration of a state of emergency. The Tyrant vs. The Free Man In 300, Xerxes presents himself as an all-powerful ruler, demanding submission from Leonidas and the Spartans. Similarly, Tinubu’s imposition of emergency rule can be interpreted as an assertion of supreme federal power over Rivers State, challenging its autonomy. Fubara, like Leonidas, stands as a figure of defiance, resisting what he and his supporters perceive ...
Breaking: August was the largest decrease in foreign exchange reserves in four months, falling by $505.68 million.
By Chico Mies
In August 2024, Nigeria's foreign exchange (FX) reserves decreased by roughly $505.68 million (1.37%).
The Central Bank of Nigeria's (CBN) most recent reserve data supports this. The Nigerian government issued a $500 million domestic dollar bond at the same time that the country's external reserves marginally declined.
This domestic dollar bond is intended to give the foreign reserves much-needed boost.
What the information indicates
By August 29, 2024, the reserves will have decreased by $505.68 million, according to the CBN, from $36.827 billion on August 1 to $36.321 billion.
The CBN's data show a steady fall in August, with a considerable decline in the last week of the month. As the weeks went by, the reserves, which were $36.827 billion at the start of the month, progressively declined.
The reserves fell to $36.848 billion on August 8th, and by August 15th, the mid-month low had been reached at $36.529 billion.
The decrease persisted, hitting $36.444 billion on August 22 and $36.321 billion at the conclusion of the month.
For the first time in four months
The decrease marks the most significant monthly drop in Nigeria's foreign exchange reserves since April 2024.
This ongoing reduction follows a four-month span during which the external reserves experienced an increase of approximately $4 billion. Consequently, the reserves have diminished by roughly 12.64% of their four-month gain as of August 2024.
This also underscores the challenges encountered by Nigeria's financial authorities in sustaining reserve levels in the face of persistent economic pressures, which include the necessity to fulfil import requirements, meet debt obligations, and ensure liquidity for the stability of the naira.
Essential Information You Should Be Aware Of.
During the first week of August, the Central Bank of Nigeria (CBN) conducted a Retail Dutch Auction, selling $876.26 million at an exchange rate of N1,495 per dollar to 26 eligible banks.
The CBN reported that it received total bids amounting to $1.18 billion from 32 dealer banks. However, six banks were disqualified from the bidding process; four failed to meet the submission deadline, while two did not adhere to the required bidding templates.
In the context of declining foreign exchange reserves, the Nigerian official foreign exchange market witnessed a significant reduction in turnover throughout August, despite the CBN's initial Retail Dutch Auction.
Data sourced from the FMDQ by Nairalytics, the research division of Nairametrics, indicates a decrease of $1.08 billion, resulting in a total turnover of $3.25 billion, down from $4.34 billion recorded in July 2024.
This 25% decline underscores the persistent challenges confronting the official foreign exchange market regarding liquidity and stability.
The average daily foreign exchange turnover fell from $189.42 million in July to $144.71 million in August, marking a reduction of 23.61%. This downturn points to a notable decrease in market activity, reflecting growing difficulties in obtaining foreign currency.
On August 19, 2024, the Nigerian federal government officially launched a $500 million domestic dollar bond.
This bond, part of the government's financing strategy, carries an interest rate of 9.75% per annum and is scheduled to mature in 2029.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, remarked that the $500 million domestic dollar bond will bolster external reserves and contribute to stabilizing the foreign exchange environment in the nation.
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