FCSL WEEKLY REPORT _3RD JULY, 2020

Global Economy –Rundown:
A glimpse of hope towards global economic recovery was spurred on the hills of encouraging rebound from manufacturing activities emanating from the world economy powers (China & United State), as the respective economy recorded weighty growth in its manufacturing activity for the month of June. According to data released by Institute for Supply Management (ISM), the US factory activities index for June soared to 52.6 index point, as against previous month contraction reading of 43.1 index point, this significant improvement was spurred by an uptick in economic activities that transcend along improved manufacturing data, consumer spending, encouraging housing market and growth from job rehiring.
 
Domestic Economy –Rundown:
The Apex Bank as assessed to pressure from both domestic and international front by aligning its exchange benchmark rate to that of Import & Export window, and among the most compelling force was that of the international community, as the prerequisite to the recent IMF loan, as mandated the country to ensure the convergence of exchange rates benchmark. While the only visible correspondent that allude to the rate unification claims was the Apex Bank advice to bidders at its Secondary Market Intervention Sales, where it stated the floor bid rate was N380/$1, as against previous floor rate of N360/$1, although its official website has not been updated to reflect the adjustment, if such unification materialise, it then implies that the Nation’s Currency has dipped by 24% approximately from an initial Official rate of N306/$1 as at the commencement of the year, compared to the adjusted rate of N380/$1, while earlier rate adjustment was in March that position the Nation’s currency at N360/$1. Read more: