Macroeconomic Report & Economic Updates

March 22, 2016

Nigeria Economic Update (Issue 12)

The naira/dollar exchange rate remained largely stable at the parallel
market at ?320/$ during the period7, albeit slight
fluctuations on February 29, 2016 (?325/$) and March 2, 2016 (?328/$). The
decline in the hoarding of foreign currency as well as the substantial
reduction in the speculative demand for dollars were the two key factors
responsible for the ease of fluctuations in the forex market8. With the slight
increase in the price of crude oil, Nigerias foreign reserve slightly grew by $56 million, from 27.81 billion to $27.84 billion9.
With the continued increase in the price of crude oil, a modest build-up of
foreign reserve to guard against unfavourable commodity price movements is
expected in the near term.

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Extra-ECOWAS Trade And Investment Flows: Any Evidence Of Business Cycles Transmission

This study investigates the effects of merchandise trade and investment flows on the transmission of business cycles between members of ECOWAS and the major trading partnersbetween 1985 and 2014. Total trade and FDI significantly influence the transmission of business cycles with elasticities of 1.1% and 0.7%, respectively in the long run. There are little variations across the major trading partners and other measures of trade flows. Intra-industry trade flows with all partners, EU and USA influences the cross-country business cycles with elasticities of 1.0%, 0.5% and 1.8%, respectively. 

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