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Dollar Index Decreases by 1.6% in July – OPEC

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The Organisation of the Petroleum Exporting Countries (OPEC) has said the U.S. dollar index decreased by 1.6 per cent month-on-month (m-o-m) in July, erasing gains from the previous period.

The dollar index rose for the second consecutive month in June, increasing marginally by 0.3 per cent m-o-m.

OPEC said this in its Monthly Oil Market Report for August obtained by the News Agency of Nigeria (NAN) on Friday.

The report, while stating the impact of the dollar and inflation on oil prices, said the dollar receded, although the Federal Reserve hiked interest rates by 25 basis points (bp) in July.

This, it said, underscored a shift in risk sentiment as investors’ global macroeconomic outlook improved, and financial markets wagered that the U.S. economy would avoid recession.

According to the OPEC report, Year-on-Year (Y-o-Y), the index was down by 5.2 per cent.

The OPEC report said the dollar experienced mixed movement against major developed market currencies for a second consecutive month in July.

It said it recovered against the euro by 2.2 per cent m-o-m, but receded against the yen and the pound by 0.2 per cent and 2.2 per cent, respectively, over the same period.

It said Y-o-Y, the dollar was up by 8.9 per cent and 3.0 per cent against the euro and yen, respectively; however, it was down by 7.1 per cent against the pound over the same period.

“In terms of emerging market currencies, the dollar declined for a second consecutive month in July against the rupee and the Brazilian real by 0.1 per cent and 1.1 per cent respectively, m-o-m.

“Meanwhile, it advanced against the yuan for a second consecutive month by 0.3 per cent m-o-m,” the oil market report said.

It said Y-o-Y, the dollar was up by 3.2 per cent and 6.7 per cent against the rupee and yuan, respectively; however, it was down by 10.6 per cent against the real over the same period.

It said the differential between nominal and real OPEC Reference Basket (ORB) prices widened m-o-m.

It said inflation (nominal price minus real price) went from negative 1.78 dollars per barrel in June to negative 3.11 dollars per barrel in July, a 76.7 per cent increase m-o-m.

It further stated that in nominal terms, accounting for inflation, the ORB price went from 75.19 per cent per barrel in June to 81.06 per barrel in July, a 7.8 per cent increase m-o-m.

It added that Y-o-Y, the ORB was down by 25.3 per cent in nominal terms.

In real terms (excluding inflation), it said the ORB went from 76.95 dollars per barrel in June to 84.17 dollars per barrel in July, a 9.4 per cent increase m-o-m.

“Y-o-y, the ORB was down by 24.4 per cent in real terms,” it said.

China Intensifies Moves To Boost Foreign Investment

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China’s State Council has outlined guidelines to further optimise foreign investment through adequate partnerships with numerous countries.

The guidelines aim to improve the overall balance between domestic and international business relationships and foster a world-class business environment that is market-oriented, law-based, and internationalised.

They also aim to strengthen China’s market, making more efforts in attracting and utilizing foreign investment.

Under the guidelines, 24 specific measures in six aspects have been put forward, according to the State Council.

These aspects include improving the quality of foreign capital utilisation, guaranteeing the national treatment of foreign-invested enterprises, strengthening the protection of foreign investment, improving the facilitation of investment and operation, increasing fiscal and tax support, and improving ways to promote foreign investment.

The statement also said that all regions of China are encouraged to adopt supporting measures in light of local conditions to enhance policy synergy.

Zimbabwe’s Mining Boosts Diamond, Gold Reserves

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The Reserve Bank of Zimbabwe (RBZ) says it has stockpiled over 300 000 carats of diamonds, and 350kg of gold, collected under the new mining royalties system that requires mining companies to pay 50 percent of their royalties in refined minerals.

State media reported the RBZ governor John Mangudya as saying: “Since the introduction of the policy, we have collected about 300 000 carats of diamonds, while our gold reserves are around 350kg. This translates to US$20 million worth of gold in our reserves,” he said.

“The equivalent cash of diamonds in the reserves is difficult to get because there is no universal body that sets prices for diamonds.

“The other companies are also submitting their royalties in cash since the minerals are bulky.”

The legislative measures were indicated in amendments to the Finance Act (Chapter 23:04) and Reserve Bank of Zimbabwe Act (Chapter 22:15).

Under the law, mining companies extracting precious and high-value minerals are required to cede refined mineral products, as part payment of royalties to Government, in an initiative introduced to build the country’s mineral reserves.

The policy came into effect last October with gold, diamonds, lithium and platinum group metals (PGMs) producers depositing the minerals at the RBZ.

Retirement Plan To Reduce Nigeria’s Housing Deficit

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The Pension Fund Operators Association of Nigeria (PenoP) says the policy by the National Pension Commission which allows owners of Retirement Savings Accounts to use 25 percent of their account balance for mortgage will reduce the huge housing deficit in Nigeria.

With an estimated housing deficit of 28 million as of 2023, Experts say the country requires about N21 trillion to build sufficient housing units to meet Nigeria’s needs.

Speaking at the 2023 journalists workshop organised by Nigeria’s Pension Commission in Abuja, the Chief Executive Officer, Pension Fund Operators Association of Nigeria (PenOP), Oguche Agudah
said that the mortgage financing policy by PenCom will go a long way in closing that deficit.

Agudah while delivering a paper on “Improving Accessibility and Service Delivery in RSA Mortgage Financing,” noted that Nigeria’s housing deficit grew from 7 million in 1991 to 28 million in 2023 leading to overcrowded and obsolete housing infrastructure.

“According to the Association of Housing Corporations of Nigeria (AHCN), home ownership rate in Nigeria is 25%, one of the lowest in the world.

“As such, with the new mortgage policy of PenCom, RSA holders could acquire their own home with 25 percent of their pension savings, and will further ensure that people acquire properties even before retirement.

“So far, 187 RSA holders have received N3.1 billion for mortgage since the policy started last year and the figures are expected to rise as the year progresses,” he explained.

“One of the the outstanding provisions of the Policy is that couples can apply, however they must individually be eligible,” Oguche added

NNPCL Awaits Presidential Directive N48BN Pipeline Deal

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The Federal Government has not issued any directive for the cancellation or re-award of the N48bn oil pipeline surveillance contract in the Niger Delta, contrary to speculations in some quarters.

It was, however, gathered that the Nigerian National Petroleum Company Limited was awaiting the presidential directive on the future of the contract.

In August last 2022, it was reported that the government awarded the pipeline contract to a security firm of the former leader of the Movement for the Emancipation of Niger Delta, Government Ekpemupolo, popularly known as Tompolo.

The surveillance contract, reportedly worth N48bn per year (N4bn per month), elicited diverse reactions, as some stakeholders commended the move, while others kicked against it, leading to recent claims that it might be cancelled or awarded to another firm.

This came as oil sector operators and analysts advised the Federal Government to analyse the Key Performance Indicators of the contract before re-awarding or terminating it.

Recall that the Senate through its Committee on Ethics, Privileges and Public Petitions, in January, summoned the Group Chief Executive Officer, NNPCL, Mele Kyari, over the pipeline contract, following a petition by the Isoko Community, alleging that their young men were not carried along in the multi-billion naira project.

The Isoko people under the auspices of Interested Isoko Youth Groups, through a petition sent to the Senate on their behalf by Stanley Okonmah, had alleged that they were completely marginalised in the contract award.

The lsoko Ethnic Nationality had requested the Senate to probe the award of the contract and prevail on the NNPCL management to award a fresh contract to a company owned by an Isoko person.

But sources at the NNPCL stated on Friday that though there had been speculations recently that the contract could be re-awarded, no directive had been issued on that.

When asked whether the NNPCL would cancel or re-award the contract, an official of the national oil firm replied, “This question should be directed at the Presidency/National Security Adviser. It’s not a decision NNPC can make.”

When probed further on whether it was not the NNPCL that engaged the security firm, the official replied, “with presidential approval.”

Kyari had defended the contract around the time it was awarded, as he explained that the decision was necessitated by the need for Nigeria to hire private contractors to man its oil pipeline network nationwide due to massive oil theft.

He said, “The security agencies are doing their part, end-to-end pipeline surveillance would require the involvement of private entities and community stakeholders.

“We need private contractors to man the right of way to these pipelines. So we put up a framework for contractors to come and bid and they were selected through a tender process. And we believe we made the right decision,” the NNPCL boss had stated.

CBN Releases Financial Statements of 7-Years

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The Central Bank of Nigeria has released the Consolidated Financial Statements for the last seven years, making it the first time since 2015 that the apex bank will be making its book available for public scrutiny.

The Consolidated Financial Statements, which were released by the CBN, are for 2016, 2017, 2018, 2019, 2020, 2021 and 2022 financial periods.

The CBN declared a profit after tax of N103.8bn in 2022, up from N75.13bn reported a year earlier.

Also, the CBN owes JP Morgan and Goldman Sachs a combined sum of $7.5bn as of the financial year ended December 2022.

Included as part of its liabilities is another $6.3bn owned in foreign currency forwards.

The apex bank, however, stated it owes Goldman Sachs $500 million and JP Morgan $7 billion in what it classified as securities lending.

The 2022 financial statement read, “The Group entered into a securities lending agreement with Goldman Sachs and J. P. Morgan and as part of the agreement, the Group pledged its holdings on foreign securities in return for cash. The cash received from Goldman Sachs is N0.23tn ($500m), 2021: N0.22tn ($500m), and JP Morgan N3.23tn ($7bn), 2021: N3.05tn ($7bn) is recognised in other foreign securities.”

Securities lending forms part of the CBN’s total external reserves of about N14.3tn or $29bn using the official exchange rate of N494/$1 as of 2022.

However, the apex bank also owes another N3.15tn ($6.3bn) in foreign currency forward which are forex obligations it needs to make to foreign investors.

The financial statements uploaded on the CBN website is an indication that the apex bank, under the leadership of acting Governor Folashodun Shonubi, is ready to open its book to public scrutiny.

The suspended CBN Governor, Godwin Emefiele, had come under attack for not releasing the financial statements to the public.

Since 2005 when it started publishing details of its annual report on its website, the CBN never failed to publish the report until 2016, when it stopped the publication of the crucial documents.

According to the CBN Act 2007, the apex bank is expected to publish its report within two months after the end of each financial year.

“The Bank shall, within two months after the close of each financial year, transmit to the National Assembly and the President a copy of its annual accounts certified by the Auditor.

“A report required to be submitted to the National Assembly and the President shall be published by the Bank in such a manner as the Governor may direct

“The Board shall ensure that accounts submitted pursuant to this section shall as soon as possible be published in the Gazette.

“The Bank shall as soon as may be practicable after the last day of each month makeup end publish a return of its assets and liabilities as at the close of business on that day, or if that day is a holiday, as at the close of business on the last preceding business day,” the Act reads.

Analysts are of the view that the failure of the CBN to publish the report could send wrong signals to investors and others interested in understanding the state of the economy.

President Bola Tinubu had appointed Jim Obazee as a Special Investigator to probe the activities of the CBN and other related entities.

In a letter dated July 28, Tinubu said the appointment of Obazee, relying on the fundamental objective set forth in Section 15(5) of the Nigerian constitution, was in furtherance of his administration’s anti-corruption fight.

The appointment is with immediate effect, and Obazee is to report directly to the President.

According to the letter signed by the President, the full terms of Obazee’s engagement as a special investigator will be communicated to him in due course.

80 People Confirmed Dead By Wildfires In Hawaiian Island of Maui

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Eighty people have now been confirmed to have been killed by wildfires on the Hawaiian island of Maui, officials say.

There are fears the numbers will rise further, as hundreds are still uncontactable.

Firefighters have been trying to contain fires in several areas, including the historic town of Lahaina which has been utterly devastated.

Hawaii’s attorney general has announced a “comprehensive review” into how the authorities responded to the wildfires.

It comes as questions mount over whether officials warned residents fast enough.

On the Honoapiilani Highway – one of the only available routes into Lahaina – cars sat bumper-to-bumper, with families looking tired and worried alongside trucks piled high with supplies, water, fuel, nappies and toilet paper.

But within hours after opening, the road was shut to everyone but emergency services.

Authorities told the BBC that police had been called in to address a “situation” but would not elaborate.

Evacuated Lahaina residents later said they believed their homes had been struck by looting, though this was not confirmed by police.

Still, for hours after the closure, families sat in a mile-long line.

Earlier, Governor Josh Green had warned residents would be greeted by “destruction like they’ve not ever seen in their lives”.

And for many of Lahaina’s evacuees, that waiting devastation is still too much to see.

In Paukukalo, a coastal neighbourhood east of Lahaina, 23 stranded members of the Tacderan family gathered with relatives to take stock of the loss.

“Protect The Pacific Ocean!” South Korean Activists Protest Against Fukushima Water Discharge

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Hundreds of South Korean activists gathered in central Seoul on Saturday to protest against Japan’s plan to release treated radioactive water from the tsunami-wrecked Fukushima nuclear power plant into the ocean.

Japan’s Asahi Shimbun daily reported earlier this week that the country plans to start releasing the water into the ocean as early as late August, citing unidentified government sources.

“If it is discarded, radioactive substances contained in the contaminated water will eventually destroy the marine ecosystem,” said Choi Kyoungsook of Korea Radiation Watch, an activist group that organised the protest.

“We are opposed… because we believe the sea is not just for the Japanese government, but for all of us and for mankind.”

Hundreds of protesters held up signs saying “Keep It Inland” and “Protect the Pacific Ocean!” while singing songs and listening to rally organisers.

Japan’s nuclear regulator last month granted approval for plant operator Tokyo Electric Power (9501.T) to start releasing the water, which Japan and the International Atomic Energy Agency said is safe but nearby countries fear may contaminate food.

U.S. President Joe Biden will meet Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk Yeol for a trilateral summit on Aug. 18.

“There is talk that the dumping of contaminated water is on the summit agenda. The governments of South Korea, the U.S., and Japan should view it an environmental disaster, rather than a political issue, and agree to block it… for future generations,” Choi said.

Hawaii Recent Wildfires Disaster Second Only To 1992 Hurricane Iniki

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The total insured loss from the ongoing wildfires on Maui island is expected to be the second largest in Hawaii’s history, according to catastrophe modeling firm Karen Clark & Company (KCC).

The fast-moving inferno, which started earlier this week, ravaged the historic resort town of Lahaina that was once the capital of the Hawaiian Kingdom.

The impact of the fire would be second only to the Hurricane Iniki, which hit Hawaii in 1992, based on today’s property value, KCC said in a note.

The firm estimates the total area burned at about 2,200 acres, while roughly 3,500 buildings within the fire perimeter.

Search teams on Maui on Friday would comb through the charred ruins of Lahaina looking for more victims of the wildfire, with officials expecting the death toll of 55 to rise.

Insurance broker Aon said the extreme devastation to homes, businesses and other structures in Lahaina would likely drive economic and insured losses into the hundreds of millions of dollars.

Since the situation is ongoing, losses may continue to rise and significant disruption to tourism in Maui, a major part of the local economy, would be realized for the foreseeable future, Aon in its weekly catastrophe report said.

Exploring Blue Hole Park, Bermuda

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Blue Hole Park, better known as Tom Moore’s Jungle as well as Walsingham Nature Reserve, is a unique natural feature that is a popular getaway spot, and it is located in the eastern part of the Hamilton Parish, within the northern part of the British Overseas Territory in the North Atlantic Ocean, Bermuda.

This 5 hectares (12 acres) park is certainly becoming a more popular one, as it allows the visitors to see something different from the tiny island territory.

The locals refer to the park as Tom Moore’s Jungle, after the Irish poet who wrote some of his greatest work when he was here, getting inspired by this heaven on Earth.

Still, the entire natural feature is actually a connection of pools, caves and underground tunnels, and the main pool that is quite large is surrounded by mangrove forest, cliff jumping spots, and an intriguing cave.

Getting here is easy, as there are trails which lead to the pool, nonetheless, there are different offshoot paths that lead through the dense woodland area to various attractions.

Even though the area is partially owned by the Bermuda Government, in addition to the group of trustees and another private landowner, the entrance to this natural gem is free of charge, however, swimming inside the caves is not permitted.

After all, just swimming in the main pool that is surrounded by the amazing mangrove forest is simply an ideal opportunity for everyone to be mesmerized by the nature that is somehow hidden in this part of Bermuda.