ANALYSIS OF THE 2024 GLOBAL MARKET PROJECTION BY STANDARD CHARTERED BANK
Standard chartered bank has revealed its global market outlook for 2024, featuring insights from Ayodeji Adelagun, the managing director/head of financial markets for Nigeria & rates & credit for West Africa at the bank. Adelagun suggested that to maintain a stable economy and prevent bankruptcy, Nigeria needs to borrow approximately N21 trillion in 2024.
Despite the prevailing low optimism in the country, Adelagun anticipates an economic turnaround if necessary, measures are taken. He highlighted the primary challenge as the lack of interest in the economy by foreign investors, expressing confidence that with current measures in place, foreign investors will naturally show interest.
Adelagun believes that foreign portfolio investors will become interested in Nigeria, particularly through Euro bond opportunities. He emphasized that the crucial concern for these investors is the ease of entry and exit, and recent efforts, such as the publication of market prices by FMDQ, are positive developments that could attract foreign portfolio investors.
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Adelagun emphasized the need for Nigeria to borrow N21 trillion in 2024, attributing the requirement to the current economic challenges and the efforts to stabilize the economy. He noted that while the process might not happen immediately, it is a positive development that could lead to increased foreign portfolio investments.
Regarding inflation, Adelagun pointed out that the Federal Government and the Central Bank of Nigeria (CBN) must mop up at the right level. He indicated that in 2024, interest rates are likely to rise, and the fiscal and monetary agencies have distinct roles and objectives.
In a positive outlook, Adelagun mentioned that policies are being implemented to address economic issues, and collaboration with FMDQ and other measures may attract foreign portfolio investors. He highlighted the importance of legitimate demands for foreign exchange, reduction of illegitimate demands, and building confidence to minimize currency speculation.
Adelagun concluded by suggesting that interest rates will rise, and individuals should build up cash to invest in Treasury Bills or bonds at the opportune time.
News Sources: Techeconomy
