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 …

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 …

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 …

If a surging stock market and falling risk-free rates are signs of optimism, then we can be optimistic about Nigerian markets this year. Indeed, the Central Bank of Nigeria (CBN) might congratulate itself on its bold policy experiments last year. We temper our enthusiasm by observing that T-bill rates are well below the rate of …

If risk-free asset yields are driven low enough for long enough (and T-bill rates has been falling since October), then risk assets will gain in popularity. The equity market is booming, rather too quickly for our new Model Equity Portfolio to catch up (see page 3). On page 2 we examine the curious divergence of …

Connecting Customers to Opportunities Coronation Merchant Bank Annual Report and Accounts 2018 Download Report