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Naira recovers on back of rising foreign reserves

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By Kayode Sanni-Arewa

The naira rallied to a recovery at the weekend on the back of sustained increase in the country’s foreign exchange (forex) reserves.
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The naira appreciated by 1.0 per cent to N1, 482.81 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM).

This came as the nation’s forex reserves rose by additional $73.05 million to $32.74 billion. It was the fifth consecutive accretion in the continuing buildup of the reserves.

Penultimate week, the reserves had added $195.01 million. It had grown by $89.76 million, $132.68 million and $10.76 million in recent weeks.

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At the forwards market, naira contracts closed on the upside at the weekend with the one-year contract appreciating by 1.1 per cent to $1,504.10 per dollar. The three-month contract recovered by 1.4 per cent to N1,546.65 per dollar while the six-month contract appreciated by 0.6 per cent to N1,621.89 per dollar. However, the one-year contract slipped by 0.1 per cent to N1,769.62 per dollar.

Finance and economy experts were unanimous that the buildup in external reserves was a good indication for the country’s currency management and macroeconomic stability.

Analysts expected that changes in forex management rules, steady improvement in crude oil production and upbeat in global oil price could help the country mitigate its volatile forex situation.

President, Association of Capital Market Academics in Nigeria, Prof Uche Uwaleke, said any increase places the CBN in a stronger position to meet forex obligations as well as intervene in the forex market.

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“If this development is sustained, we are likely to witness an appreciation of the naira in the forex market and more stability in the exchange rate following improved liquidity. This is one positive development capable of keeping away destructive speculators from the forex market,” Uwaleke said.

Uwaleke however said Nigeria needs to curb excessive import dependence to support its forex recovery.

“It goes without saying that export-based diversification remains the oly sustainable solution to the present forex crisis,” Uwaleke said.

According to him, to curb the demand pressure, government should compel a change in consumption behaviour by enacting a ‘Buy Nigeria law’ akin to the ‘Buy America Act’ of 1933 and recently the ‘Build America, Buy America Act’ of 2021.

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“Also, Nigeria’s import data support revisiting and scaling up the CBN’s currency swap deal with the Peoples Bank of China. Given that the bulk of Nigeria’s imports are from China, it stands to reason, therefore, to explore ways of bypassing the dollars and settling these transactions in the Yuan. This was the idea behind the currency swap with China which was largely inadequate in size. In order to increase the stock of Yuan in our external reserves, Nigeria can issue panda bonds, which are bonds denominated in the Chinese Yuan and are considered cheaper than Eurobonds,” Uwaleke said.

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TCN announces planned outage at Abuja transmission substation

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Transmission Company of Nigeria, TCN, Abuja Region has announced a planned preventive maintenance at the Katampe 132/33 KiloVolt (kV) Transmission Substation on Saturday from 9:00am to 4:00pm.

General Manager, Public Affairs of the TCN, Mrs Ndidi Mbah, made this announcement in a statement in Abuja on Saturday.

Mbah said the scheduled maintenance is to enable TCN’s maintenance crew carry out preventive maintenance on the 100 Mega Volt Ampere (MVA) 132/33kV Power Transformer (TR1), its auxiliaries, and associated switchgear in the substation.

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”Consequently, Abuja Electricity Distribution Company, AEDC, will be unable to off-take bulk power for distribution to customers in parts of Mpape, Maitama, Jahi, Life Camp,

”Others are Kado Fish Market, Idu-Karmo, and their environs during the maintenance period,” she said.

According to her, the company regrets any inconvenience the planned outage may cause electricity customers in the affected areas.

She added that equipment maintenance is essential to ensure their continued optimal performance.

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Iran’s Supreme Leader Mojtaba Khamenei barred from father’s funeral rites over fear of potential assassination

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Iran’s Supreme Leader, Mojtaba Khamenei, has reportedly been barred from attending the funeral of his late father, Ali Khamenei, over fears that he could be targeted in a potential attack.

According to U.S. media reports citing two members of the Islamic Revolutionary Guard Corps (IRGC), Iranian authoritiesl decided against allowing Mojtaba Khamenei to make a public appearance due to heightened security concerns and ongoing threats against senior Iranian leaders.

Reports in recent days had already indicated that the new Iranian leader was unlikely to attend the six-day funeral ceremonies because of security risks and fears of assassination attempts.

The funeral of Ali Khamenei, who was killed in a joint U.S.-Israeli airstrike earlier this year according to multiple reports, has drawn millions of mourners and heightened tensions across the Middle East.

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Iran has announced a six-day state funeral and burial programme for late Supreme Leader Ali Khamenei, with ceremonies taking place across Iran and Iraq before his final interment in the holy city of Mashhad.

July 3-5: Lying in state and public mourning at the Grand Mosalla Mosque in Tehran.

July 6-8: Funeral processions and religious ceremonies in the Iranian cities of Qom and Mashhad, as well as the Iraqi holy cities of Najaf and Karbala.

July 9: Final burial in Mashhad, Khamenei’s hometown, at or near the revered Imam Reza Shrine, one of Shiite Islam’s holiest sites.

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Iranian authorities expect the funeral to attract millions of mourners, making it one of the largest state funerals in the country’s history. Security measures have been significantly tightened, with reports indicating concerns over potential threats to senior Iranian leaders, including Supreme Leader Mojtaba Khamenei.

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Nigeria-Japan Move to Deepen Diplomatic Ties 

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By Gloria Ikibah

Nigeria and Japan have reaffirmed their commitment to strengthening bilateral relations, with both countries pledging to expand political engagement, deepen economic cooperation and boost trade and investment.

The renewed commitment was made during a courtesy visit by the Chargé d’Affaires ad interim of the Japanese Embassy, Shin Honda, to the Minister of State for Foreign Affairs, Ambassador Sola Enikanolaiye, in Abuja.

The meeting reviewed the current state of Nigeria-Japan relations and explored ways to strengthen collaboration in areas including sustainable development, technology transfer and private sector investment.

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Speaking during the meeting, Ambassador Enikanolaiye described Japan as one of Nigeria’s most valued development partners and praised the country’s remarkable progress in industrialisation and innovation.

The minister said Nigeria was keen to deepen economic relations with Japan by attracting greater investment into critical sectors of the economy.

He said: “Japan remains one of Nigeria’s valued development partners, and we commend the country’s achievements in industrialisation, technological innovation, manufacturing and heavy industries.

“Nigeria remains committed to deepening economic ties and attracting greater Japanese investment in key sectors of the economy. We also appreciate Japan’s longstanding support for Nigeria’s development priorities and reaffirm the Federal Government’s commitment to creating an enabling environment for stronger bilateral cooperation.”

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He added that closer engagement between the private sectors of both countries would play a key role in driving investment, technology transfer and economic growth.

“We welcome stronger collaboration between the private sectors of both countries to boost investment, technology transfer and economic growth”, he said.

In response, Honda reaffirmed Japan’s commitment to expanding its strategic partnership with Nigeria through increased political consultations, trade, investment and development cooperation.

“Japan remains committed to strengthening its strategic partnership with Nigeria through enhanced political consultations, increased trade and investment, and continued development cooperation”, he said.

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He highlighted Japan’s ongoing support for Nigeria in infrastructure development, agriculture, healthcare, humanitarian assistance and peacebuilding, while noting the contribution of the Japan External Trade Organization (JETRO) in promoting commercial relations between both countries.

Honda also briefed the minister on preparations for the Nigeria-Japan Special Policy Dialogue, scheduled to take place in Abuja at the end of August during the visit of Japan’s Assistant Minister for Foreign Affairs.

He said the planned visit to Japan later this year by Nigerian business magnate Aliko Dangote would further strengthen private sector cooperation.

“The proposed visit of Nigerian business leader, Alhaji Aliko Dangote, to Japan later this year will further strengthen private sector collaboration between both countries”, he stated.

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Both countries reaffirmed their commitment to ensuring the success of the forthcoming Nigeria-Japan Special Policy Dialogue and agreed to sustain regular consultations aimed at advancing mutually beneficial cooperation.

The meeting underscored the long-standing friendship between Nigeria and Japan, with both sides expressing optimism that stronger diplomatic and economic engagement would deliver lasting benefits for the two nations.

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