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Across Your Markets

Change in commodity futures prices YTD May 8, 2020: Cocoa (-4.8%); Wheat (+3.7%); Maize (-17.5%); ICE Natural gas (-55%); Gold (+12.1%); Soyabeans (-23.1%); Cotton (-18.2%); Rough rice (+27.2%); Platinum (-18.5%); Arabica coffee (-15.1%); Brent crude oil (-53.3%); Copper (-14.6%); Sugar (-23.3%);     Whilst Africa's growth in 2020 could fall to its lowest since the 2008/9 global financial crisis, the asymmetric nature of shocks facing the region, coupled with increasing investment and cross-border trade, should help the region recover speedily.

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July 24, 2021

Nigeria: An arsenal of ‘F’ words-Forex, Food and Fertiliser

Food and fertiliser importers will have to source foreign exchange independently of the central bank as part of efforts to stem forex outflows and narrow Nigeria’s trade deficit. The country’s trade deficit widened to NGN 178.2 billion in JunN1e 2020, the largest in over 15 years. Nigeria spent 16 percent of its total import bill on food and live animals in Q2-2020, according to official data. The new foreign exchange policy is likely to be felt in the flour milling sector—Nigeria is Africa’s third largest wheat importer with a current import need (for wheat) valued at around USD1.1 billion, typically sourced from Russia, the USA and Canada. However, the challenge to  access foreign exchange is likely to encompass the wider business community with US dollar obligations, and the World Bank has requested CBN flexibility in that regard.



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