Please Wait....
Close

    Weekly Economic Index: Oil prices rise for the fifth consecutive week


    The IMF has recommended that Nigeria and other developing countries should shun loans from China. This is because the loans do not align with the Paris Club arrangements and sometimes may not be beneficial to the borrowers.

    Speaking on this, Financial Counsellor and Director of the IMF’s Monetary and Capital Market Department, Tobias Adrian, urged countries to make sure that when they borrow from abroad, the terms are favourable for them.

    “In particular, we tend to recommend that loans to countries should be conforming to Paris Club arrangements. And that is not always the case in the case of loans from China,” Adrian said.

    Not only are these loans unfavourable in most cases, but many developing countries also lack proper management and good governance to channel these funds into the right sectors.

    For instance, countries like Zambia have had to give up its state-owned Kenneth Kaunda Airport, National Broadcasting Corporation and Zesco power plant as a resultant effect of its default on the loan from the Asian country.

    While Nigeria was in total indebtedness of $3.22 billion to China as at the end of 2017, according to the Debt Management Office (DBO).

    Adrian called on emerging markets making volatile capital flows to limit their dependence on short term overseas debt, as well as policymakers to develop tools that can help sustain the financial system.

    Below is the Ventures Africa Weekly Economic Index, for the week ending 12th of April, 2019. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:

    Nigerian Stock Exchange

    Data released by the Nigerian Stock Exchange (NSE), as of 12th April 2019, showed that the All-Share Index depreciated by 0.19 percent from the previous week ending 5th March 2019. Market capitalization at the close of trading during the week under review was N11.103 trillion, a 0.19 percent decrease from N11.469 trillion recorded the previous week. The All Share-Index for the week under review closed at 29,560.47

    Top five price gainers and decliners in the week under review:

    Top five price gainers

    Learn Africa Plc.

    May & Baker Nigeria Plc.

    Chams Plc.

    Regency Assurance Plc.

    Mutual Benefits Assurance Plc.

    Top five price decliners

    Ikeja Hotel Plc.

    Associated Bus Company Plc.

    McNichols Plc.

    Royal Exchange Plc.

    NEM Insurance Plc.

    How did the Naira fare?

    Nigeria's-Inflation-rate
    PIUS UTOMI EKPEI/AFP/Getty Images

    The Naira appreciated against the dollar last week as it ended the week at N359.9 per dollar on the 12th of March 2019. It had recorded N361 to a dollar a week before.

    How did the price of oil fare?

    Brent oil prices closed out the week on the 12th of April 2019 at $72.21 per barrel, recording an increase from the $70.52 recorded a week earlier, and a fifth straight increase. The continuing rise in oil prices since the beginning of 2019 has been attributed to US sanctions on Venezuela and Iran, a supply cut from OPEC countries, and more recently, political crises in Libya.

    The post appeared first on Ventures Africa.




    Story Page