By Kwasi Kpodo
Ghana&#8217;s central bank slashed its benchmark interest rate on Monday by two percentage points to 23.5 percent, noting signs inflation was trending downwards, in a move that may help spur lending and business activity.
Ghana was for years one of Africa&#8217;s fastest-growing economies but growth slumped in 2014 due to falling commodities prices, high inflation, a big budget deficit and public debt. As inflation eases, the bank can lower the cost of borrowing.
The size of Monday&#8217;s rate cut came as a surprise. It was the biggest by the bank since December 2006 and follows a 50 basis-point reduction in January.
<blockquote>&#8220;The (Monetary Policy) Committee noted that underlying inflation pressures have eased considerably and inflation is projected to trend downwards toward the medium term target,&#8221; Bank of Ghana Governor Nashiru Issahaku told a news conference.</blockquote>
The central bank has a medium-term inflation target of 8 percent, plus or minus 2 percentage points.
&#8220;There are indications that growth is likely to remain significantly below potential which, alongside an improved inflation outlook, provides some scope for monetary policy easing,&#8221; Issahaku said.
Ghana&#8217;s government took power on Jan. 7 and inherited a weak macro-economic position. It says stabilising the national finances is a top priority and a prerequisite for restoring rapid economic growth through a boost to the private sector.
The Bank is independent but Monday&#8217;s reduction serves President Nana Akufo-Addo&#8217;s purpose to find ways to stimulate private sector growth, economists said.
It is unlikely, however, to lead to a reduction of commercial rates in the short term in part because a gap remains between the bank rate and the benchmark 91-day treasury bill, which stood at 17.5103 percent on Friday, economists said.
&#8220;There was a huge mismatch that had to be corrected &#8230;. (But) in the real world, not much has changed,&#8221; said Joe Jackson of Dalex Finance, a non-bank financial institution in Accra.
&#8220;Commercial bank lending rates will not come down. The challenge is that the fundamentals haven&#8217;t changed,&#8221; he said.
Inflation stood at 13.2 percent in February, but the government said it is confident it can meet its 2017 end-year inflation target of 11.2 percent. There was little movement in the cedi against the dollar, which stood at 4.3650 at 1357 GMT.
The government is to renegotiate targets set in a $918-million International Monetary Fund programme aimed at helping Ghana stabilize its economy.
(Writing by Matthew Mpoke Bigg; Editing by Tom Heneghan)

Ghana central bank slashes benchmark interest rate

Nigeria&#8217;s monetary and fiscal authorities must cooperate on their policies to help Africa&#8217;s largest economy to develop, the central bank governor said, according to his spokesman.
Central Bank Governor Godwin Emefiele made the comments at a two-day retreat for members of the bank&#8217;s Monetary Policy Committee and the ministers for finance, budget and investment. The closed-door meeting, which takes place about three times a year, ended on Saturday.
OPEC member Nigeria is in its first recession in 25 years, largely brought on by low oil prices. Crude oil sales account for about two-thirds of government revenue.
The central bank has faced criticism from investors for keeping Nigeria&#8217;s currency, the naira, at a rate some 30 percent above the black market, where entrepreneurs are forced to go for foreign exchange with the dollar scarce on official channels.
&#8220;Godwin Emefiele reiterated the need for the country&#8217;s monetary and fiscal authorities to collaborate and harmonize standpoints so as to develop the economy rapidly,&#8221; central bank spokesman Olalekan Ajayi said in an emailed statement on Sunday.
The finance ministry has previously said adjustments were needed to narrow the spread between exchanges rates on the official and black market. The central bank devalued the rate for retail customers in February after Nigeria&#8217;s top economic advisor body called for an urgent review.
The bank&#8217;s Monetary Policy Committee is due to meet on Monday and Tuesday to set interest rates. Twelve out of 13 economists polled by Reuters predicted that the bank would leave its benchmark interest rate unchanged at 14 percent on Tuesday.
(Reporting by Camillus Eboh and Alexis Akwagyiram, in Lagos, editing by Larry King)

Nigerian central bank head urges cooperation on monetary & fiscal policy

Hard currency curbs imposed by Nigeria&#8217;s central bank have helped boost local food production, central bank governor Godwin Emefiele was quoted as saying by two newspapers on Sunday.
Entrepreneurs have criticized a halt to hard currency allocations by the central bank for the import of almost 700 goods to prop up the naira hammered by a fall in oil revenues and boost local food production.
&#8220;This policy was basically borne out of necessity to conserve foreign exchange,&#8221; Emefiele said in a speech, referring to the import ban, according to Vanguard newspaper.
&#8220;This policy needs to be supported not just in response to the pressure on the naira but as an opportunity to change the economy&#8217;s structure, resuscitate local manufacturing and expand job creation for our citizens,&#8221; he added.
Emefiele also said Egypt&#8217;s experience with a free float of its currency did not convince him Nigeria should follow suit as it might increase inflation.
&#8220;I have heard commentators suggest we should follow Egypt&#8217;s example and free the naira,&#8221; Emefiele said, according to THISDAY newspaper.
&#8220;What they do not tell you is that following their currency adjustments inflation today in Egypt is over 30 percent. Is that what we want in Nigeria?&#8221; he said.
The central bank has faced criticism from investors for keeping the naira at a rate some 30 percent above the black market where entrepreneurs are forced to go amid dollar scarcity on official channels.
The central bank was not immediately available for comment.
(Reporting by Ulf Laessing; Editing by Stephen Powell)

Nigeria central bank governor defends policy of limiting imports

Nigeria&#8217;s central bank took a step nearer to outright devaluation of the naira currency on Tuesday, providing 23 commercial banks with a combined $370.8 million at forward exchange rates up to 15 percent weaker than the official rate.
On Monday, the central bank effectively devalued the local currency for private individuals, who account for about 20 percent of total foreign exchange demand in the country.
On Tuesday, it said it sold dollars using one- and two-month forward exchange rates to commercial banks whose bids ranged from 315 naira to 360 naira per dollar, up to 15 percent weaker than the official rate of 305 naira that commercial importers typically use.
Forward exchange rates are rates at which banks agree to exchange one currency for another at a future date.
Selling the dollars at new one- and two-month forward rates may set expectations for the central bank to allow the naira to trade at a weaker level in the future, after the government had kept it at an artificially strong value according to critics.
Banks bought $216.5 million in one-month forwards, and $154.3 million in two-month forwards, said the central bank.
Nigeria&#8217;s dollar supply has been throttled by foreign currency restraints and low exports of crude oil. The government devalued the naira last June but still kept it at just over 300 to the dollar &#8211; as much as 40 percent stronger than black market rates in the following months.
Despite calls from businesses and economists, the government had refused to take steps to devalue the naira further until now, while President Muhammadu Buhari, a staunch opponent of devaluation, has been on medical leave in Britain for over a month.
On Monday, Nigeria weakened the naira rate for private individuals days after a top advisory body demanded an urgent review at a meeting chaired by Vice President Yemi Osinbajo, who is currently acting president.
It was Osinbajo who unveiled the idea of a more flexible exchange rate last year, also while Buhari was on medical leave, leading to a 30 percent devaluation weeks later.
In Tuesday&#8217;s statement, the central bank said it had offered $500 million to banks, &#8220;but not all of them provided enough naira backing to pay fully for their respective bid amounts&#8221;.
The central bank said it was &#8220;more than ever ready to support the inter-bank market by ensuring liquidity and transparency to guarantee efficiency in the Forex market.&#8221;
 
(Reporting by Camillus Eboh; Additional reporting by Chijioke Ohuocha and Ulf Laessing in Lagos; Writing by Paul Carsten; Editing by Hugh Lawson)﻿

Nigeria steps nearer to devaluation with central bank dollar sale

Nigeria&#8217;s central bank said on Monday it would supply dollars immediately to retail clients through commercial lenders who will resell them at a margin of not more than 20 percent above the interbank rate of 305 naira per dollar.
The central bank plans to boost dollar sales for school fee payments and travel abroad as part of efforts to reduce a 40 percent premium paid for dollar on the black market, where retail customers buy their hard currency.
The bank said it would activate the market&#8217;s order-book as soon as possible and accelerate currency matching of the trading platform to ensure transparency.
&#8220;Given our plan to meet all unfilled orders, and while provision of FX to the manufacturing sector would remain the central bank&#8217;s strong priority, we will no longer impose allocation/utilization rules on commercial banks,&#8221; the bank said in a statement.
 
(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; editing by John Stonestreet)﻿

Nigeria's central bank to supply FX to retail clients at 20 pct above interbank rate

Kenya cancelled the auction of a re-opened, 15-year Treasury bond worth up to 30 billion shillings ($288.74 million), the central bank said late on Wednesday.
The bank did not give a reason for the cancellation. Traders said this was the first cancellation of a bond auction by the bank in recent years. It cancelled the sale of 364-day Treasury bill at the start of this month, they added.
 
($1 = 103.9000 Kenyan shillings)﻿

Kenya cancels sale of 30 bn shillings Treasury bond

South Africa&#8217;s central bank kept its benchmark repo rate unchanged at 7 percent on Tuesday, in line with expectations, saying the near-term outlook of inflation has deteriorated while the domestic growth outlook remained constrained.
All 27 economists polled by Reuters expected the repo rate to be kept on hold.﻿
Below are comments from South African Reserve Bank Governor Lesetja Kganyago on Tuesday as he announced the central bank&#8217;s latest decision on its benchmark repo rate.
INFLATION
&#8220;The near-term inflation outlook has deteriorated. The expected inflation profile has been negatively affected by higher in international oil prices and a persistence in food price inflation.
&#8220;Inflation is now expected to return to within the target range during the final quarter of 2017.&#8221;
RAND
&#8220;The rand has been positively affected by the improvement in the terms of trade, following the recent increase in commodity prices.
&#8220;The rand was positively affected by the decisions of the ratings agencies not to downgrade the sovereign foreign credit rating to sub-investment, although this remains a risk.&#8221;
GROWTH
&#8220;The recent monthly data paint a bleak picture for the fourth quarter or 2016. Notwithstanding some improvement, consumers remain under pressure and consumer confidence remains low.
&#8220;The domestic growth outlook remains weak and more or less unchanged since the previous meeting of the MPC (Monetary Policy Committee).&#8221;
DECISION
&#8220;The MPC retains the view that we may be near the end of the hiking cycle however should second round effects emerge that undermine the longer term inflation outlook there may be a reassessment of this view.
&#8220;The MPC remains concerned that the longer-term inflation trajectory continues to be uncomfortably close to the upper end of the target range.&#8221;
Nigeria&#8217;s central bank held its benchmark interest rate at 14 percent on Tuesday, and kept its cash reserve ratios for commercial banks at 22.5 percent, governor Godwin Emefiele said. The rate decision matched the view of most economists polled by Reuters last week.

Nigeria, S.A keep rates on hold

Gambia&#8217;s central bank deposits are &#8220;intact&#8221;, a spokesman for President Adama Barrow said on Monday, a day after the new leader had said there was no money left in the state coffers.
Barrow said on Sunday that it appeared his exiled predecessor, Yahya Jammeh, had looted state resources after his election defeat. A Barrow adviser later said Jammeh had withdrawn the equivalent of over $11.5 million before he flew out of the country as West African troops were poised to remove him.
That amount would represent 1.2 percent of Gambia&#8217;s 2015 GDP, according to World Bank figures.
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&#8220;There had been information to the public about the central bank. It was of particular concern but the inspector general (of) police told me that everything is intact,&#8221; Halifa Sallah said at a news conference in Gambia&#8217;s capital Banjul.
It was not immediately clear if Barrow and his adviser, Mai Ahmad Fatty, had been referring to central bank funds or other state resources. Fatty could not be reached for clarification.
Jammeh is believed to have acquired a vast fortune, including a fleet of Rolls-Royces and an estate in a wealthy suburb of Washington, D.C during his rule.
The veteran leader, who had refused to hand over power after his defeat in December&#8217;s election, flew out of Gambia late on Saturday en route to Equatorial Guinea after negotiations backed by regional military pressure.
But even before the cheers to celebrate Jammeh&#8217;s departure had died down, there was dismay that the former soldier was being allowed to flee into luxurious exile and might hold onto his fortune.
Rights groups also accuse Jammeh, who took power in a 1994 coup, of jailing, torturing and killing political opponents &#8211; charges Jammeh has denied. Barrow denied on Sunday that Jammeh had been offered immunity.
Sallah on Monday also announced that Barrow had named Fatoumata Tambajang, the country&#8217;s former health minister, as vice president. Tambajang was the architect of the opposition coalition that backed Barrow in the election.
He added that the director general of the country&#8217;s National Intelligence Agency had assured him that all prisoners held by the agency had been released but that the new administration would be looking into additional claims of missing persons.
 
($1 = 43.1800 Gambian dalasis)﻿

Gambia's central bank accounts intact, says president's spokesman

South Africa&#8217;s central bank will give extensive comment to the anti-graft watchdog about a preliminary report claiming Barclays Africa Group benefited from an apartheid-era bailout, Governor Lesetja Kganyago told talk radio 702 on Friday.
The Mail &amp; Guardian newspaper reported that Absa, a unit of Barclays Africa Group, could be forced to pay 2.25 billion rand ($166.32 million) to the state for an alleged unlawful apartheid-era bank bailout if a preliminary report by the Public Protector remains unchanged.
&#8220;We have received the preliminary report of the Public Protector and we are checking it for factual accuracy. We will give extensive comment to the Public Protector,&#8221; Kganyago said.
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In her suggested remedial action, watchdog Busisiwe Mkhwebane has also proposed that President Jacob Zuma should consider a commission of inquiry into apartheid-era looting of the state, the Mail &amp; Guardian reported.
Absa described the report as having &#8220;several factual and legal inaccuracies&#8221; and said it will continue to cooperate with the Public Protector.
&#8220;In its current form it perpetuates an incorrect view that Absa Bank Ltd was the beneficiary of undue South Africa Reserve Bank assistance,&#8221; Absa said in a statement.﻿

South Africa's cenbank to weigh in on Barclays Africa bailout report

Nigeria&#8217;s central bank sold about $1 billion on the forward market last week to clear a backlog of dollar obligations in selected sectors, traders said on Thursday, its largest special auction since a currency peg was removed in June.
Outstanding dollar demand was about $4 billion before June, when the 16-month-old peg was removed. Efforts to cut dollar demand have been largely unsuccessful due to low oil prices.
Crude sales account for about 90 percent of Nigeria&#8217;s foreign exchange earnings.
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Traders said the central bank told banks to prioritise airlines, manufacturing firms, petroleum products importers and agriculture sectors, the sectors worst hit by the dollar shortage, in the auction.
&#8220;The central bank sold $1 billion at last week&#8217;s special forex auction and directed banks to issue fresh letters of credit to reflect the amount sold in favour of the affected sectors,&#8221; a senior currency trader told Reuters.
Traders said the central bank sold 30-day and 60-day forwards at the auction.
On Dec. 19, the central bank instructed commercial lenders to submit their backlog of dollar demand from fuel importers, airlines, raw materials and machinery for manufacturing firms and agricultural chemicals for the special forex intervention.
Nigeria is in its first recession for 25 years, caused by the oil price drop which has cut the supply of dollars needed to fund imports. Attacks by militants on pipelines in the Niger Delta since January have cut crude output, further reducing dollar inflows.
The dollar shortage in the OPEC member, whose crude sales make up two thirds of government revenue, has caused many companies to halt operations and lay off workers, compounding the economic crisis.
Some foreign airlines have closed down or reduced their operations over an inability to repatriate the proceeds of their earnings due to the dollar shortage.
An acute shortage of jet oil in the last few months &#8211; caused by the inability of importers to secure the dollars needed to buy the fuel &#8211; has led to many operators refuelling in neighbouring countries.
Flight cancellations by local airlines have become commonplace as a result of the shortages.
The naira was trading at about 305.25 to the dollar on the interbank market on Thursday and was quoted at 490 a dollar on the unofficial market.﻿

Nigeria sells $1 bln to help clear backlog in dollar

South Africa&#8217;s current account deficit widened to 4.1 percent of gross domestic product in the third quarter of 2016 from a revised deficit of 2.9 percent in the second quarter, the central bank said on Friday.
Economists surveyed by Reuters had expected a 3.65 percent deficit for the quarter.
Exports fell during the quarter, resulting in a trade deficit of 4 billion rand ($291.5 million) compared with a revised surplus of 48 billion rand in the second quarter, the Reserve Bank said in its December quarterly bulletin.
The bank said the deficit in the current and trade accounts were due to weaker global demand for the country&#8217;s goods.
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&#8220;Export earnings were also affected by the strengthening in the exchange value of the rand which more than offset the benefit arising from higher international commodity prices,&#8221; the bank said.
($1 = 13.7233 rand)﻿

South Africa's Q3 current account deficit widens

South Africa&#8217;s weak economic growth and heightened political risk are a risk to its investment grade sovereign credit rating, the central bank said on Wednesday.
In its second and last financial stability review for 2016, the Reserve Bank also said thin liquidity was a recurring problem for the rand currency, and it would closely monitor conditions in the currency market.
Africa&#8217;s most industrialised economy is only expected to expand by 0.5 percent this year, down from a target of 0.9 percent the Treasury set in February.
The central bank also cut its own estimate to 0.4 percent in September, and kept interest rates on hold as a result, despite inflation pressures.
&#8220;The low economic growth is presenting headwinds to the domestic banking sector and has put the country&#8217;s sovereign credit rating at risk,&#8221; the bank said. &#8220;Key threats to the country&#8217;s sovereign rating also include heightened domestic risk.&#8221;
Ratings agencies, which are due to review South Africa&#8217;s rating before the end of the year, have warned of downgrades over the underperforming economy, and the political turmoil.
Moody&#8217;s rates South Africa two notches above subinvestment grade, with a negative outlook, while Fitch and S&amp;P Global Ratings have it just a step above &#8220;junk&#8221;.
Investors have been jittery since President Jacob Zuma inexplicably changed finance ministers twice within a week in December, replacing the well-respected Nhlanhla Nene with an relatively unknown junior politician.
Zuma re-appointed Nene&#8217;s predecessor Pravin Gordhan to calm markets after a run on the rand and government bonds, but an ongoing police probe into Gordhan&#8217;s role in setting up a surveillance unit at the tax department, which police say spied on politicians, has hurt sentiment.
Gordhan, who denies any wrong doing, has called the investigation, as well as fraud charges, which were later dropped, politically motivated. Prosecutors have rejected the accusation.

Cenbank : S.Africa's low economic growth a risk to credit rating.

Ethiopia&#8217;s central bank aims to develop Islamic finance to help expand financial access and inclusion, part of wider government efforts to mobilize domestic resources to diversify its economy, a central bank official said.
The landlocked country has one of the highest economic growth rates in Africa, but relies heavily on an agricultural sector that employs three-quarters of the workforce and contributes to around 80 percent of exports.
The government wants to industrialize its economy but this requires sustaining investment rates of almost 40 percent of GDP over the next five years, said Getahun Nana, Vice Governor of the National Bank of Ethiopia.
&#8220;This can only be achieved if the financial sector, particularly the banking industry, can play significant role in mobilizing desperately needed savings from domestic sources.&#8221;
Islamic finance could help in this endeavor, so the central bank is conducting a study to determine the demand for sharia compliant financial products in a country where around a third of the population of 100 million is Muslim.
The study would help determine what proportion of Muslims are excluded from the financial sector, Nana said in a speech during an Islamic finance conference held this week in neighboring Djibouti.
&#8220;If this is identified to be a barrier, a specific and enabling regulatory framework will be developed so as no one is excluded from obtaining financial services because of religious reasons.&#8221;
Islamic finance is still new in Ethiopia, despite the government allowing financial institutions to offer such products back in 2008.
Currently eight out of 18 financial institutions offer sharia compliant products via Islamic windows but they have so far mobilized less than 1 percent of total deposits, Nana said.
&#8220;Sharia compliant financing facilities that these banks provided to their customers are even very much insignificant.&#8221;

Why Ethiopia wants to develop Islamic finance

Mozambican President Filipe Nyusi appointed Rogerio Lucas Zandamela, an International Monetary Fund (IMF) official, as central bank governor to replace Ernesto Gove, whose term has ended, the presidency said on Wednesday.
The appointment comes as Mozambique is battling to restore the confidence of donors such as the IMF as it grapples with a spiraling debt and financial crisis that has rocked the economy of one of the world&#8217;s poorest countries.
Zandamela, who holds a PhD from Johns Hopkins University, is currently head of mission to Djibouti and Somalia for the IMF.
The International Monetary Fund is demanding an external forensic audit of Mozambique&#8217;s public debt after a scandal over more than $1 billion in secret loans, its local representative said on Tuesday.
Parliament and the attorney-general&#8217;s office have launched investigations into the undisclosed borrowing in 2013 and 2014 but the government has baulked at opening up its books to outside auditors.
However, the IMF, which suspended assistance when the loans came to light this year, has insisted on external scrutiny as a precursor to resuming financial aid to the southern African country which has huge offshore gas reserves.
Investor confidence has also been shaken by revelations that the bulk of an $850 million &#8220;tuna bond&#8221; meant to build a fishing fleet was channeled to maritime security.
The debt crisis and aid suspension has hit Mozambique hard, with its currency, the metical, losing nearly 40 percent against the dollar since January.
With foreign debt soaring towards 100 percent of GDP, the government has been forced to revise its 2016 budget, which now shows a deficit equal to 11.3 percent of GDP, while the central bank hiked interest rates by 300 basis points in July to try to prop up the currency and contain inflation.
 
(Reporting by Manuel Mucari; Writing by Ed Stoddard; Editing by Dominic Evans)﻿
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Mozambique president appoints IMF official as central bank governor

Nigeria&#8217;s central bank has suspended nine banks from the interbank currency market for failing to remit money owed to the government, banking sources told Reuters on Tuesday.
The suspension comes after the central bank tightened restrictions on the flow of dollars to domestic lenders in March. That has forced the banks to delay hard-currency loan and trade repayments and increased their risk of default.
&#8220;This is really a function of the dire macroeconomic situation and illiquidity in the FX markets rather than willful non-compliance by banks,&#8221; said Diran Olojo, a spokesman for FCMB, one of the banks.
Olojo said the bank was working with the central bank to resolve the issue.
The banks have failed to remit $2.1 billion, the government&#8217;s share of dividends from the state-owned gas company, NLNG. The banks were supposed to pay the money into the government&#8217;s account at the central bank.
Last year, President Muhammadu Buhari ordered the merger of state accounts into that one account at the central bank to reduce corruption.
In addition to FCMB, the banks are First Bank, United Bank for Africa (UBA), Heritage Bank, Keystone Bank, Skye Bank, Diamond Bank, Sterling Bank and Fidelity Bank, banking sources say.
&#8220;We could not trade today,&#8221; one banker said. &#8220;The suspension is meant to pass on the pressure to banks to make payments (but) this is foreign currency and we have to source the dollars.&#8221;
Nigeria, Africa&#8217;s largest economy, is suffering its worst financial crisis in decades as a slump in oil revenues hammers public finances and the naira. The central bank governor has said recession is likely.
The bank floated the currency in June to attract investment, allowing the naira to fall by 40 percent against the dollar. But foreign investors have remained on the sidelines, making the central bank the main supplier of dollars.
Some lenders were trying to sell assets to pay the funds, another banker said, adding that the central bank was aware of refinancing challenges facing the industry.
A director at one of the affected lenders said his bank informed all board members of the suspension via a letter on Tuesday, adding it held $125 million of the total sum.
The central bank has been selling dollars almost daily to boost interbank trading and liquidity. But it reduced its sales volume this week, traders said, after it settled two-month outright forwards it sold in June.
The regulator paid $1.2 billion for currency forwards it sold in June at 280 per dollar, the bankers said, further draining its dollar reserves. Those reserves are down to $25.7 billion, their lowest in more than 11 years.
The naira, which hit a record low of 365.25 per dollar on Thursday, closed flat at 305.50 on Tuesday, gaining ground after the central bank sold dollars.﻿

Nigeria central bank suspends nine banks from FX market – source

Nigeria&#8217;s central bank has asked commercial lenders to allocate 60 percent of their foreign exchange purchases to manufacturers, in a bid to boost their ability to pay for imports and boost the economy.
Widespread dollar shortages, caused by a fall in oil revenues, have hit manufacturers&#8217; ability to import raw materials and spare parts, forcing many plants to close.
The central bank said in a circular it wanted to encourage the production of local goods by asking banks to allocate more hard currency to industrial firms.
&#8220;Authorised dealers (banks) are hereby directed to dedicate at least 60 percent of their total foreign exchanger purchases from all sources to end-users strictly for the purposes of importation of raw materials, plant and machinery,&#8221; the bank said in a circular dated Aug 22 and seen by Reuters on Tuesday.
In June, the bank abandoned its naira peg to the dollar, allowing the currency to weaken by 40 percent in a bid to attract more foreign investment.
But so far trading in the official foreign exchange market has been limited as those with dollars prefer to sell them for a higher rate on the black market.
Nigeria&#8217;s economy contracted in the first quarter and officials have said recession is likely.
 
(Reporting by Oludare Mayowa; Editing by Ulf Laessing and Andrew Heavens)﻿

Nigeria asks banks to give 60 pct of their forex to manufacturing firms

NAIROBI &#8211; Kenya&#8217;s central bank threatened commercial banks with legal action if they submit inaccurate or incomplete data to credit reference bureaus, according to a circular seen by Reuters on Wednesday.
Kenyan banks have come under fire in recent weeks for the high costs they impose on borrowers. Two weeks ago, parliament passed a bill to cap the commercial interest rates banks charge.
Both the central bank and the Kenyan Finance Ministry oppose the bill, an amendment to the country&#8217;s banking laws. They argue that caps on lending rates will drive borrowers to informal financial services, increase credit inefficiency and undermine transmission of monetary policy.
Credit reference bureaus are one alternative to legal limits on lending rates. They were established in 2010 to help banks gauge the risks of lending, which in turn should help lower the cost of credit for consumers. So far, though, they have not done much to reduce rates.
In the circular dated Aug. 10, the central bank accused lenders of failing to submit accurate and complete data to the bureaus and failing to advise their customers when they are listed with the bureaus for defaulting.
&#8220;Failure to comply with the reporting requirements or any other provision of the CRB regulations will attract enforcement action as specified under the Banking Act,&#8221; the central bank said in the circular.
The circular plays to the narrative of banking critics, who say the lenders use high interest rates to drive up their profits at the expense of borrowers.
Lamin Manjang, the chairman of the Kenya Bankers Association, said the organisation would not stand for any member using the credit reference bureaus to harass borrowers.
&#8220;It shouldn&#8217;t be used a tool to punish any borrower, if any such incident happens it is something that as an association we will take very seriously,&#8221; he told reporters before the central bank&#8217;s circular was made public.
  
(Reporting by Duncan Miriri)﻿

central bank

Ghana central bank slashes benchmark interest rate

Nigerian central bank head urges cooperation on monetary & fiscal policy

Nigeria central bank governor defends policy of limiting imports

Nigeria steps nearer to devaluation with central bank dollar sale

Nigeria's central bank to supply FX to retail clients at 20 pct above interbank rate

Kenya cancels sale of 30 bn shillings Treasury bond

Nigeria, S.A keep rates on hold

Gambia's central bank accounts intact, says president's spokesman

South Africa's cenbank to weigh in on Barclays Africa bailout report

Nigeria sells $1 bln to help clear backlog in dollar

South Africa's Q3 current account deficit widens

Cenbank : S.Africa's low economic growth a risk to credit rating.

Why Ethiopia wants to develop Islamic finance

Mozambique president appoints IMF official as central bank governor

Nigeria central bank suspends nine banks from FX market – source

Nigeria asks banks to give 60 pct of their forex to manufacturing firms

Kenya's central bank warns lenders over misuse of credit bureaus

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central bank

Ghana central bank slashes benchmark interest rate

Nigerian central bank head urges cooperation on monetary & fiscal policy

Nigeria central bank governor defends policy of limiting imports

Nigeria steps nearer to devaluation with central bank dollar sale

Nigeria's central bank to supply FX to retail clients at 20 pct above interbank rate

Kenya cancels sale of 30 bn shillings Treasury bond

Nigeria, S.A keep rates on hold

Gambia's central bank accounts intact, says president's spokesman

South Africa's cenbank to weigh in on Barclays Africa bailout report

Nigeria sells $1 bln to help clear backlog in dollar

South Africa's Q3 current account deficit widens

Cenbank : S.Africa's low economic growth a risk to credit rating.

Why Ethiopia wants to develop Islamic finance

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Kenya's central bank warns lenders over misuse of credit bureaus

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