How do Countries make currency swap agreements work?

Nigeria’s currency swap with China has proven successful in simplifying trade, easing forex pressure, and strengthening the Naira.

👉 In 2018, the Central Bank of Nigeria (CBN) and People's Bank of China (PBOC) signed a 15 billion yuan swap agreement to allow Nigerian businesses to directly exchange Naira for Yuan, bypassing USD.
👉The agreement has been renewed twice (in 2021 and 2024) to enhance liquidity and ease transaction complexities between the two countries.
👉Nigeria-China trade reached $22.56 billion in 2023, with China increasing imports from Nigeria by 36.1% year-on-year.
👉Nigerian banks have also expanded their global presence, with Access Bank UK opening a branch in Hong Kong to strengthen the currency swap and trade with China.
👉First Bank of Nigeria Ltd. plans to expand operations beyond Beijing to major hubs like Guangdong and Shanghai, bolstering economic ties.

Key Lessons for Ethiopia
1️⃣ Expand banking infrastructure by encouraging Ethiopian banks abroad and inviting partner banks to set up locally.
2️⃣ Educate businesses through awareness campaigns to promote the use of the swap mechanism.
3️⃣ Regularly monitor and renew agreements to ensure trade alignment and growth.
4️⃣ Use swaps to reduce forex pressure strategically without over-reliance. ©️Bayu Samuel

#CurrencySwap #TradeFinance #NBE

@PatternFin

📊 Ethiopia Export Highlights (July-Nov 2024)

💰 Revenue: $2.6B, exceeding target by 139%

📈 YoY Growth: 102%

📦 Volume: 612,499 tons


Sector Performance 🏆

🌾 Agriculture: 50.4%
⛏️ Mining: 39.7%
🏭 Manufacturing & Others: 9.9%

Star Performers ⭐
☕ Coffee: 178,670 tons ($797.4M)
🥇 Gold: 12.67 tons ($1B)


🔄 Currency Update: Ethiopian Birr floating policy showing early positive results, despite >100% depreciation vs USD.

Ethiopian Private insurance companies 2023/24 Financial year Performance.
compiled by Abay Stock Market.
#NileInsurance #LionInsurance #AfricaInsurance #NibInsurance #NyalaInsurance #NIC

@PatternFin

Meet it or Risk it!

In April 2021, the National Bank of Ethiopia (NBE) issued a directive mandating banks to have a minimum paid-up capital of ETB 5 billion.

Existing banks must meet this requirement by 30 June 2026, while banks that were in the process of being established when the directive was issued have seven years from the commencement of their operations to comply.

Banks that fail to meet the capital requirement by the deadlines will either be placed under receivership by the NBE or required to undergo a voluntary merger or acquisition with another bank.

With only a year and a half remaining before the deadline, at Evopica, we analyzed the progress of banks that have not yet met the minimum capital requirement and assessed their journey towards compliance.

It’s worth noting that Enat Bank's data is based on FY23 figures as its 2024 report is unpublished, and Omo Bank's data was unavailable. #Evopica

@PatternFin

🎄ርሑስ በዓል ልደት🎄

🎄🎄🎄🎄🎄🎄

🎄መልካም የገና በዓል🎄
🎁🎁🎁🎁🎁🎁🎁

#ነዳጅ

ከዛሬ ማክሰኞ ታኅሣሥ 29/2017 ዓ/ም ከምሽቱ 12 ሰዓት ጀምሮ

➡ አንድ ሊትር ቤንዚን 101.47 ብር

➡ አንድ ሊትር ናፍጣ 98.98 ብር

➡ አንድ ሊትር ኬሮሲን 98.98 ብር

➡ የአውሮፕላን ነዳጅ 109.56 ብር

➡ አንድ ሊትር ከባድ ጥቁር ናፍጣ 105.97 ብር

➡ አንድ ሊትር ቀላል ጥቁር ናፍጣ 108.30 ብር ሆኖ እንዲሸጥ ተወስኗል።

#ነዳጅ #ኢትዮጵያ #tikvahethiopia

@PatternFin

NBE pauses independent forex bureau licensing pending evaluation

Regulators at the National Bank of Ethiopia (NBE) are no longer processing license requests for new applicants seeking to get involved in the forex trading business.

In early October 2024, the central bank announced it had issued licenses to five independent foreign exchange bureaus in a bid to undercut the parallel market following the floating of the currency a few months prior.

Dugda Fidelity Investment PLC, Ethio Independent Foreign Exchange Bureau, Global Independent Foreign Exchange Bureau, Robust Independent Foreign Exchange Bureau, and Yoga Forex Bureau were the recipients.

Regulators are evaluating how the five firms are performing before proceeding to process applications for new licenses, according to Yenehassab Tadesse, director of forex monitoring and reserve management at NBE. #Reporter

@PatternFin

🌐 Currencies stronger than US Dollar

This image presents a visual comparison of #currencies stronger than the #USDollar. It shows the value of each currency in terms of how many US Dollars (#USD) one unit can buy. The currencies listed and their #exchangerates are:

🇰🇼 1. #KuwaitiDinar (KWD): The strongest currency, where 1 KWD equals $3.24 USD.

🇧🇭 2. #BahrainiDinar (BHD): 1 BHD equals $2.65 USD.

🇴🇲 3. #OmaniRial (OMR): 1 OMR equals $2.60 USD.

🇯🇴 4. #JordanianDinar (JOD): 1 JOD equals $1.41 USD.

🇬🇧 5. #BritishPound (GBP): 1 GBP equals $1.25 USD.

🇰🇾 6. #CaymanDollar (KYD): 1 KYD equals $1.15 USD.

🇨🇭 7. #SwissFranc (CHF): 1 CHF equals $1.11 USD.

🇪🇺 8. #Euro (EUR): 1 EUR equals $1.04 USD.


Key Insights:

Kuwaiti Dinar leads as the highest-valued currency globally, largely due to its oil-based economy and strict monetary policies.

Middle Eastern currencies (Kuwaiti Dinar, Bahraini Dinar, Omani Rial, and Jordanian Dinar) dominate the top spots, reflecting economic stability and pegging to stronger reserve currencies.

The British Pound remains the highest-valued currency in Europe.

The Euro, despite being widely used, is among the lowest on the list of stronger currencies compared to USD.

The Cayman Dollar and Swiss Franc indicate strength due to the financial stability of these regions.


This infographic effectively highlights global currency strength, emphasizing economic factors like resource #wealth, #monetarypolicy, and #financial system stability.

#CurrencyExchange
#ETB
#ForeignCurrency

@PatternFin

የነዳጅ ዋጋ በኢትዮጵያ
****************
ግሎባል ፔትሮል ፕራይስ የተባለው ዓለም አቀፉ የነዳጅ ዋጋ አቅራቢ በድረ-ገጹ ኢትዮጵያን ነዳጅ በዝቅተኛ ዋጋ በመሸጥ ከአፍሪካ ሀገራት በ8ኛ ደረጃ፣ ከዓለም በ28ኛ ደረጃ ላይ አስቀምጧል።

ድረ-ገጹ ከተለያዩ የዓለም ሀገራት ወቅታዊ የነዳጅ ዋጋን እየሰበሰበ የሚያሰፍር እና ከነዳጅ ጋር የተያያዙ መረጃዎችን እና ጥናታዊ ጽሑፎችን የሚያሰራጭ ነው። በዚሁ መሰረት በዓለም አቀፍ ደረጃ የቤንዚን ዋጋ በአማካይ $1.23 (የአሜሪካ ዶላር) እንደሆነ ጠቅሶ፤ የቤንዚን ዋጋ በኢኮኖሚ በአደጉ ሀገራት ዝቅተኛ እንዲሆን የሚጠበቅ ቢሆንም፣ በተቃራኒው ግን በዝቅተኛ ዋጋ የሚሸጡ ታዳጊ ሀገራት ናቸው ይለናል።

በድረ-ገጹ አሁን ባለው ወቅታዊ የነዳጅ ዋጋ ከኢትዮጵያ ቀድመው የሰፈሩት በአብዛኛው የእስያ ነዳጅ አምራች ሀገራት ናቸው። በዚህ መሰረት በዓለም ዝቀተኛ ዋጋ የቆረጠችው ኢራን ስትሆን፤ አንድ ሊትር ቤንዚን በ$0.0229 ለሕዝቧ ታቀርባለች። በሁለተኛ እና ሦስተኛ ደረጃ ላይ የተቀመጡት ሊቢያ እና ቬኒዙዌላ በዚሁ ቅደም ተከተል በ$0.030 እና በ$0.035 ያቀርባሉ።

ኢትዮጵያ 150 የዓለም ሀገራት ከሚያቀርቡበት ዝቅ ባለው በ$0.805 ለማቅረብ ዋጋ መቁረጧን መረጃው ያሳያል። ድረ-ገጹ ባሰፈረው መረጃ መሰረት በዓለም በከፍተኛ ዋጋ ነዳጅ በማቅረብ ከአንድ እስከ ሦስተኛ ደረጃ ላይ የተቀጡት ሀገራት ሆንግኮንግ ($3.369)፣ አይስላንድ ($2.233) እና ሞናኮ ($2.203) ናቸው።

ለናሙና በተመረጡ እና የትላልቅ ኢኮኖሚ ባለቤት በሆኑ የተወሰኑ ሀገራት ያለውን የቤንዚን ዋጋ ስንመለከት ደግሞ፥ በዩናይትድ ስቴት $0.897፣ በካናዳ $1.230፣ በእንግሊዝ $1.704፣ በፈረንሳይ $1.802፣ በጀርመን $1.781፣ በቻይና $1.092፣ በሕንድ $1.177 ሲሆን፤ በጎረቤት ኬንያ $1.351 እንደሆነ መረጃው ያሳያል። #EBC

#Fuel
#OPEC

@PatternFin

እንደውም ገና ይጨምራል ማለታቸው ይሆን 🤔

Africa Gets New Stock Market as Ethiopia Seeks to Woo Investors

=>Ethiopia’s stock exchange set to begin trading on Friday

=>Horn of Africa nation is opening up its economy backed by IMF
Bloomberg

@PatternFin