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Nigeria’s Senate summons CBN over revised cash withdrawal limits
Nigeria’s Senate committee on banking has summoned two deputy governors of the Central Bank of Nigeria to appear before the house tomorrow to address some concerns raised over the revised cash withdrawal limits. Meanwhile, Nigeria’s external reserves has dropped to 37 billion dollars and forecast to dip further to a range of 36 billion dollars in the next few days. Oluwatosin Ayanfalu, Assistant Vice President, Securities Trading and Investment at ZEDCAP Partners joins CNBC Africa to discuss these headlines.
Thu, 08 Dec 2022 12:18:00 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The impact of downgraded debt ratings on Nigeria's cost of capital in international markets is a cause for concern, potentially complicating the government's debt raising plans.
- Nigeria's attempt to learn from neighboring countries like Ghana and avoid a debt restructuring crisis underscores the importance of managing debt sustainability and revenue-debt repayment ratios.
- The Senate's summons of the Central Bank over revised cash withdrawal limits signals a broader debate on the implications of cash restrictions and the need for careful policy implementation to foster economic growth.
Nigeria's economic landscape is facing a multitude of challenges, from downgraded debt ratings to revised cash withdrawal limits and dwindling external reserves. The Finance Minister's concerns about the impact of downgrades on the cost of capital in international markets have raised alarms about the country's debt raising plans. With rating agencies casting a shadow over Nigeria's debt ratings, the Minister is grappling with the difficulties of accessing foreign capital at favorable rates. Oluwa Tosi Iofa Liu, Assistant Vice President of Security Trade and Investment at ZCAP Partners, shed light on the implications of these downgrades, emphasizing the need for the government to navigate the turbulent waters of the international financial markets carefully. The potential for increased borrowing costs looms large, as investors scrutinize Nigeria's ability to weather economic storms. The Finance Minister's attempt to reassure investors while acknowledging the challenges ahead reflects a delicate balancing act that the government must perform to sustain economic stability.
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