Author: merchant-bank
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Foreign exchange flexibility
The Central Bank of Nigeria (CBN) last Friday changed the rate in the principal foreign exchange markets by 3.6% in US dollar terms. This looks like a swift adjustment to the pressures in the markets and suggests flexibility. When it comes to the Monetary Policy Rate (MPR) to be decided by the CBN’s Monetary Policy […]
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Global volatility at 10-year high
The VIX Index, a US index of volatility, stands at its highest level since the global financial crash of 2008. Volatility is not the same thing as risk, but volatility can cause risk if global investors head towards safe assets (e.g. US bonds) and do not wish to refinance comparatively risky assets in emerging markets. […]
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Oil price crash is a defining FX risk factor
We began this year with the view that the Naira / US dollar exchange rate could hold for most of 2020. When the coronavirus outbreak became apparent at the end of January we still believed that a combination of monetary stimulus in developed markets and foreign portfolio investment into Nigeria would stabilise the risk outlook. […]
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Coronation Merchant Bank records 14% growth in Earnings for 2019 FY
…. declares PAT of N5.097 bn Coronation Merchant Bank Limited has announced its Audited Financial Results for the year ended 31 December 2019 and declares a PAT of N5.097 bn. Commenting on the financial results, Banjo Adegbohungbe, Ag. Managing Director of Coronation Merchant Bank said that “despite the volatility of our operating environment, we navigated […]
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IFC Partners with Coronation Merchant Bank to Boost Trade Finance in Nigeria
3 March 2020, Lagos, Nigeria IFC, a member of the World Bank Group, today announced a $40 million Trade Finance Guarantee facility to Coronation Merchant Bank under its Global Trade Finance Program. This will enable Coronation Merchant Bank to establish and expand correspondent banking partnerships with several international banks in IFC’s Trade Finance program, broadening […]
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GDP plaudit for the CBN?
Since last July the Central Bank of Nigeria (CBN) has pursued non-conventional monetary policies (see Coronation Research, Year Ahead 2020, 16 January) which have seen credit grow and domestic risk-free rates fall well below the level of inflation. There are risks the Naira/US dollar exchange rate here (see below) but the CBN could claim that […]
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Coronation Breakfast Session: Re-risking the financial system
The Coronation Breakfast Session is a platform where policymakers, key decision-makers and captains of industries come together to share insights and trends in the financial industry landscape. The theme of our maiden edition was “Re-risking the financial system“, held on the 19th of February, the guest speaker was none other than a renowned economist and […]
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February tougher than January
January started so well: February is another matter. Nigeria’s stock market was the world’s best-performing in January, foreign money flowed into its fixed-income instruments. Then came the coronavirus, fears over global growth and a sharp drop in oil prices. There is no reason to panic, in our view, but it is necessary to keep a […]
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Banjo Adegbohungbe appointed Acting Managing Director, Coronation Merchant Bank
Lagos, Nigeria – January 30, 2020 The Board of Directors of Coronation Merchant Bank Limited has announced the appointment of Banjo Adegbohungbe (Banjo) as the Acting Managing Director of the Bank effective February 1, 2020. This announcement follows the Central Bank of Nigeria’s approval of the appointment. Banjo is positioned to succeed the current Managing […]
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Surprise hike in the Cash Reserve Requirement
What are the open market operation (OMO) bills of the Central Bank of Nigeria (CBN) for? And who are they for? We received some new answers last week. The OMO market is much larger than a liquidity management system might require, and serves as a means for foreign investors to enjoy Naira interest rates. Last […]
