Global oil benchmark, Brent crude, extended its declines on Wednesday, trading around $43 per barrel, down from a 2016 peak of $52.54.
Oil prices plummeted over $1 per barrel within minutes after official United States energy data showed an unexpected glut of oil in storage, according to The Telegraph.
The price of Brent crude quickly dropped from around $44.90 per barrel to $43.68, a decline of more than two per cent, after the surprisingly high storage data was revealed, dragging the market deeper into multi-month lows.
US crude oil stocks rose by 1.7 million barrels to 521.1 million barrels last week, according to the US Energy Information Administration, a development that shocked analysts who had expected the weekly report to show that stocks had fallen by 2.3 million barrels.
Separate data from the American Petroleum Institute had also buoyed hopes that oil stocks might be waning, stating on Tuesday that stocks fell by 827,000 barrels.
Brent crude had on June 8 climbed by as much as 2.1 per cent to touch $52.54, the highest price since last October. The US oil benchmark, West Texas Intermediate, also rose by nearly two per cent to $51.34 per barrel, its highest intraday price since last July.
The oil price had already seen its tentative recovery threatened by the rising US dollar and jittery demand forecasts, falling to $44.75 per barrel on Monday, its lowest level since oil traded at $43.63 per barrel on May 9.
Oil prices have rallied from lows of under $28 per barrel in January to trade above the $50 per barrel mark in June, spurred by a string of international oil production outages in the second quarter that offered temporary respite from the global glut.
The return of oil production in Canada and Nigeria after supply disruptions, combined with a strengthening US dollar, has pushed the market into reverse and sparked fears that further losses could undermine the global price recovery.
The Treasury bills market traded slightly bearish on Wednesday with yields up by 30 basis points on the average.
This development, analysts at Vetiva Capital Management Limited, said, was a reaction to the Monetary Policy Committee decision to raise the Monetary Policy Rate.
The most significant yield changes were recorded on the longer end of the space as yields on the 267 days to maturity, 281DTM, and 323DTM bills rose to 19.04 per cent, 20.35 per cent, and 19.68 per cent respectively.
The bond market however traded largely mixed with yields up by an average of six basis points. While sell pressure was evident on the 9.35 per cent Federal Government of Nigeria August 2017 bond with yield up by 33bps to close at 19.57 per cent, modest demand was observed on the 12.50 per cent FGN Januray 2026 bond as its yield declined by 14bps to 15.26 per cent.
“Amid weak market sentiment (following the rate hike), we expect the bearish trading pattern to persist in today’s session,” the analysts said.
After bouncing off a six-day losing streak in the last trading session, the Nigerian equity market maintained positive momentum, adding 93bps on the back of sustained gains in some key sectors.
The Nigerian Stock Exchange market capitalisation rose to N9.687tn from N9.597tn, while the All-Share Index closed at 28,205.62 basis points from 27,945.02 basis points.
A total of 488.899 million shares worth N4.827bn exchanged hands in 4,713 deals.
The market recorded 24 gains with Okomu Oil Palm Plc, MRS Plc, Axa Manasard Insurance Plc, Dangote Flour Plc and Unilever Nigeria Plc emerging as the top five gainers.
On the global front, European markets closed higher amidst some upbeat earnings releases and a better-than-expected United Kingdom second quarter Gross Domestic Product report (output grew by 0.6 per cent, ahead of consensus 0.4 per cent).
The naira fell against the dollar at the interbank foreign exchange market to an all-time low of 334.50 on Wednesday, a day after the Central Bank of Nigeria’s Monetary Policy Committee hiked interest rates to lure foreign investors back into local assets.
The naira had closed at 310 against the interbank market on Tuesday.
About $10m was traded at the new record low, Reuters reported.
Foreign exchange traders said investors were pushing the currency lower to test the limit of how far it could fall, given a spread of almost 12 per cent between the official and black market naira rates.
“If we have more people trying to buy the naira then it should strengthen. I think we will keep seeing the trickles … I don’t think we will see large inflows until the fundamentals of the economy improves,” one trader told Reuters.
Economic analysts said the fall in the value of the naira against the dollar at the interbank market had nothing to do with the increase in the Monetary Policy Rate.
A currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, said the exchange rate was reacting to the interplay of demand and supply at the interbank market.
He said, “This is what the interbank forex market really wants, that is, a situation where only the forces of demand and supply will determine price. So far, the CBN has not intervened this week. The rate at the interbank market today has nothing to do with the increase in the MPR.
Ezun said a depreciating naira might attract some foreign portfolio investors into the economy but would cause higher inflation in coming months.
“There is no shortcut. Rising inflation will affect consumer demand and the value of the naira,” he added,
An expert and Partner, Transaction Advisory Services, Ernst and Young Nigeria, Mr. Bisi Sanda, said the CBN’s Monetary Policy Committee should have reduced the interest rate in order to stimulate economic growth, instead of increasing the MPR.
He said, “The inflation we are experiencing is not caused by a shift in demand curve, but a shift in the supply curve. Instead of hiking the interest rate, we should have reduced it in order to stimulate growth through increased spending.
The voting pattern at the MPC shows that not all the members are actually in support of the increase in the interest rate.”
According to the Chief Executive Officer, Cowry Assets Management Limited, Mr. Johnson Chuwkwu, the CBN needs to act fast and restore confidence back to the market.
This, he said, could be done by ensuring that the exchange rate stability is achieved as soon as possible.
Chukwu said, “As it is, there is no amount of depreciation or devaluation that happens that will give foreign portfolio investors confidence. They want to see stability. They want to be able to predict the naira.
Once there is stability, confidence will return. The CBN may do this by accessing a lifeline from the International Monetary Policy Committee.”
Fidelity Bank Plc has disclosed that it was recently adjudged the “Best Green Partner 2015” by the Lagos State Government at the recently concluded 2016 Tree Planting Day.
The organisers of the event said Fidelity Bank was given the award in recognition of its contributions towards the protection and improvement of the environment.
A statement quoted organisers of the event to have said the bank showed relentless support for initiatives aimed at identifying and promoting the preservation, protection and beautification of the environment.
Speaking at the event held at the National Youth Service Corps (NYSC), Camp in Lagos, Managing Director/Chief Executive Officer of Fidelity Bank Plc, Nnamdi Okonkwo, reaffirmed the bank’s commitment to support the State’s laudable greening policy as it aligns strongly with the bank’s Corporate Social Responsibility (CSR) focus on conservation and environmental protection.
“Fidelity Bank works in collaboration with public institutions – state and local governments – to create and maintain green parks in chosen locations. The beautification of the Falomo Roundabout in Lagos State, in partnership with the Lagos State Government, is a typical example of what the Bank seeks to achieve in this area,” he said.
While promising to work with the State to create and maintain green parks in chosen locations Okonkwo noted that the bank has successfully executed several beautification projects across the country. Some of these projects included Onikan, Milverton, Dopemu and Matori Roundabouts in Lagos State; RSUT in Rivers State, Rangers Avenue junction in Enugu State, Mbaise Road in Owerri, Imo State, Abia Towers in Umuahia, KrikaSama Roundabout in Maiduguri, Borno State amongst others.
In his keynote address themed, “Lend a Hand to Save Trees”, Governor of Lagos State, Akinwunmi Ambode, noted that planting of trees was crucial for the environment as trees provide oxygen, helps conserve energy, saves water, and prevents erosion among others.
He disclosed that the state plans to plant 10 million trees by 2020. The Governor who was represented by the Secretary to the State Government (SSG), Tunji Bello commended Fidelity for initiating the drive for a greener environment.
Against expectations of financial analysts that the Monetary Policy Rate would remain unchanged at 12 per cent, the Monetary Policy Committee of the Central Bank of Nigeria on Tuesday hiked the MPR by 200 basis points to 14 per cent.
The 14 per cent MPR announced by the CBN is the highest in over a decade.
However, the committee left the Cash Reserve Ratio and the liquidity ratio unchanged at 22.5 per cent and 30 per cent, respectively.
The CBN Governor, Mr. Godwin Emefiele, who announced the decision of the committee after a two-day meeting held at the apex bank’s headquarters in Abuja, said eight out of the 12 members of the committee attended the meeting.
Out of the eight, he said five members voted in favour of monetary tightening, while the other three voted to hold the MPR at 12 per cent.
The MPR is the anchor rate at which the CBN, in performing its role as the lender of last resort, lends to the Deposit Money Banks to boost the level of liquidity in the banking system.
If the apex bank intends to increase the level of liquidity in the economy, it reduces the MPR but increases it whenever it desires to tighten money supply.
In taking the decision to increase the MPR, the CBN governor said the committee was faced with two policy choices – whether to hold or reduce the rate to stimulate growth, or increase it in order to curb inflation.
Emefiele, however, said when considered from the standpoint that the primary mandate of the CBN was to maintain price stability, the committee decided to focus on its mandate by checking inflationary pressures.
The governor explained that members of the committee agreed that the economy was passing through a difficult phase, adding that the concern was that headline inflation had risen significantly in June.
He said the June inflation of 16.5 per cent, which is the highest in 11 years, was approaching twice the upper limit of the CBN policy reference band.
The committee, he said, noted that inflation had risen significantly, eroding real purchasing power of fixed income earners and dragging down growth.
The CBN governor said the high inflationary trend had culminated in negative real interest rates in the economy, noting that this was discouraging savings.
According to him, members of the committee also noted that the negative real interest rates did not support the recent flexible foreign exchange market as foreign investors’ attitude had remained lukewarm, showing unwillingness to bring in new capital under the circumstance.
He said the decision to raise interest rate would give impetus to improving the liquidity of the foreign exchange market and the urgent need to deepen the market to ensure self-sustainability.
The governor said members were of the opinion that the liquidity of the foreign exchange market would boost manufacturing and industrial output, thereby stimulating the much needed growth.
He stated, “The MPC was further concerned that while the situation called for obvious tightening of the monetary policy stance, the technical recession confronting the economy and the prospects of negative growth to year-end needed to be factored into the policy parameters.
“The arguments in favour of growth were anchored on the premise that the current inflationary episode was largely structural.”
“Members called on the Federal Government to fast-track the implementation of the 2016 budget in order to stimulate economic activity to bridge the output gap and create employment,” he added.
When asked about the state of Nigerian banking system, the governor maintained that the industry remained strong and that there was no need for depositors to panic.
He said the fact that the management team of a bank was removed by the CBN did not mean that the lender was in distress.
Such an action, he noted, would always be taken to protect depositors’ funds when there were infractions of rules and regulation.
Emefiele added, “Let me say that since 2009, the CBN has come out to say boldly that no depositor of a Nigerian bank will lose their deposit and we stood by that to the extent that the CBN even issued guarantees in favour of any depositor and those guarantees have indeed not crystallised since 2010.”
On the bank’s assessment of the new foreign exchange policy, Emefiele said, “It has been excellent so far given that we had a 16-month period of no activity in the foreign exchange market.
“I will say that the results have been good with a few activities that we are not too happy about, but we feel that in the course of time, because it is just one month since this started, there is a lot of room for improvement.”
However, financial analysts faulted the decision of the MPC to increase the benchmark lending rate from 12 per cent to 14 per cent, adding that the decision would not result in the CBN’s objective of checking inflationary pressure.
The Head, Department of Banking and Finance, Nasarawa State University, Keffi, Uche Uwaleke, said the banking sector would be worst hit by the latest decision of the CBN.
He said, “In my view, the outcome of the MPC meeting inspires little prospects for early economic recovery. I had expected some easing of the monetary policy or at worst an unchanged MPR in view of the slump in the Gross Domestic Product.
“With the benchmark rate jumping from 12 per cent to 14 per cent, the CBN has clearly chosen to focus on inflation rather than growth. Unfortunately, this approach will most likely miss the target. The banks will be the worst hit as increase in the MPR will automatically lead to another squeeze within the system.”
The President, Time Economics Limited, Dr. Ogho Okiti, said while the tightening of the MPR would reduce negative real interest rate as well as stabilise the naira, it would not check the current level of inflation.
A Professor of Economics at the Olabisi Onabanjo University, Sherriffdeen Tella, said, “It is an unfortunate decision. When you have prices going up, what you should do is to find a way to reduce the interest rate, and not to increase it; more so, when you know that there is already a liquidity crisis in the country.
“This decision by the MPC cannot reduce inflation, we will continue to grapple with higher interest rates.”
The Chief Executive Officer, Economic Associates, Dr, Ayo Teriba, said the decision showed that the MPC was not sensitive to the plight of Nigerians.
He said, “At a time that the country is on the brink of recession, it is expected that the CBN will support economic recovery by easing the monetary policy. The CBN has been maintaining a tight monetary policy and I believe this may have partly contributed to the situation we are in today. The MPC is not sensitive to the economic situation of Nigerians. I believe this hike will worsen economic recession.
“They should have reduced the MPR and the CRR to provide support for economic recovery. The decision shows that the monetary policy is disconnected from the people.”
Speaking in the same vein, the Chief Executive Officer, Cowry Assets Management Limited, Mr. Johnson Chukwu, stated, “The inflationary pressure we are experiencing is caused by cost-push inflation, that is, foreign exchange-related problems and increase in energy costs and the rest. It is not as a result of excess liquidity in the system. So, you cannot say you want to reduce liquidity in the system to fight it.”
The Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane, said the decision would lead to increase in borrowing cost for the Small and Medium-scale Enterprises and that the general economic situation would be very tough over the next few months.
He, however, said the MPC decision was a tactical move to attract the much-needed foreign capital into the economy.
The Chief Executive Officer, Renaissance Capital, a United Kingdom-based investment bank, Mr. Temi Popoola, said the firm welcomed the decision as it would help the CBN to solve the biggest problem of attracting dollars into the economy.
“Today, it appears the biggest challenge before the CBN is how to attract dollars into the economy; and we feel that the decision by the MPC is a good step in that direction,” he stated.
FBN Holdings Plc on Tuesday declared a profit before tax of N23.84 billion for the second quarter ended June 2016.
This was against the N25.14 billion posted in the comparative period of 2015.
The report is contained in the company’s audited result released by the Nigerian Stock Exchange (NSE) on Tuesday in Lagos.
The profit represented a decrease of N1.31 billion or 5.19 per cent when compared with figure for 2015.
The report also showed that profit for the year went down from N17.46 billion to N15.13 billion, representing a drop of N2.33 billion.
The company’s net interest income stood at N62.18 billion against N126.06 billion in the corresponding period of 2015, showing a decline of N63.88 billion or 50.68 per cent.
Its interest income decreased to N85.75 billion from N110.490 billion recorded in the preceding period.
The total assets rose from N4.17 trillion recorded in December to N4.80 billion in June, 2016 while total Liabilities grew from N3.59 trillion to N4.19 trillion.
Its loans and advances to customers surged to N2.11 billion from N1.82 billion reported in the corresponding period.
In a statement announcing this development yesterday, Divisional Head, Corporate Communications, Olusola Longe-Okenimkpe said, “HBCL Investment Services Limited (HISL) a major shareholder of Heritage Bank Limited has executed the term sheet for the issuance of guarantee for its $150 million Convertible Bond with the African Export Import Bank (AfreximbanK) to support Heritage Bank Plc in its next phase of growth.
Heritage Bank recently concluded a business combination with Enterprise Bank Limited as part of its market focus and positioning strategy. The underlying essence of the combination was to facilitate the deployment of its retail banking franchise especially its aspiration of emerging as the bank of choice for small growing businesses.
Afreximbank, a frontline African financial institution believes in the uniqueness of the business strategy of Heritage Bank especially the Small Growing Business focus of the bank which aligns with the founding mission of Afreximbank.
The outcome of recent engagement with a number of institutional investors shows a desirable appetite for the bond issuance which is scheduled to be completed within a couple of weeks.
Heritage Bank continues to present itself as an evolving institution with solid commitment to innovation, service excellence and value creation underlined by world class corporate governance.”
• Projects N7.418tr federal revenue • Naira falls to N313/$ at inter-bank market
For the next fiscal year, the executive arm of government has proposed a crude oil benchmark price of $42.5 per barrel, up from the $30 in the 2016’s budget.
An estimated N7.775 trillion is expected as revenue to be generated from the oil mineral resources alone based on the proposed $42.5 benchmark price and an estimated 2.2 million barrel per day oil production volume.
These proposals are contained in the 2017 – 2019 Medium Expenditure Framework and Fiscal Strategy (MTEF) prepared by the Ministry of Budget and National Planning that would guide the engagement with the National Assembly and other stakeholders, as well as the eventual implementation of the 2017 plan when finally passed and signed into law.
The proposal is to be submitted to the National Assembly before the end of August, according to the executive arm of government. Yesterday in Abuja, the Budget and National Planning Minister, Senator Udoma Udo Udoma and the Minister of State in the Ministry, Mrs. Zainab Ahmed as well as the Director-General of the Budget Office of the Federation, Mr. Ben Akabueze, met with civil society groups to get their inputs to the MTEF in line with the provisions of the 2007 Fiscal Responsibility Act.
Unfolding the three-year MTEF budgetary plan, the executive also presented a crude oil production forecast of 2.3 million for 2018 and 2.4 million for 2019, just as it believes that the benchmark price for 2018 and 2019 would be $45 and $50 respectively. The proposal left the exchange rate at N290/$ for the three years beginning from next year to 2019 while it projected the inflation rate to remain at a double digit at 12.92 per cent for 2017; 11.88 per cent for 2018, and 12.57 per cent for 2019.
Surprisingly, Udoma projects Nigeria’s BDP to rise from its sluggish growth level of 0.35 now to 3.02 per cent in 2017; 4.26 per cent in 2018, and 4.04 per cent in 2019.
He explained: “The GDP growth is projected to gradually recover after the slowdown. A very marginal positive growth of 0.35 per cent is envisaged for 2016 and is projected to 4.04 per cent in 2019, thus averaging 3.77 per cent during MTEF period. GDP growth is largely to be driven by non-oil sector with agriculture, including agro – business, solid minerals, building and housing playing a lead role. Export- led growth is to be pursued as government will continue to step up efforts in diversifying the productive base of the economy as well as implementing relevant reforms.”
On non-oil mineral revenue, the minister declared that Companies Income Tax (CIT) was projected to increase from N1.788 trillion this year to over N1.86 trillion in 2017 and beyond; VAT collections/ receipts to increase by about 42.4 per cent in 2017, while operating surpluses from independent revenue sources projection are expected to moderate in 2017 and thereafter a modest growth.
On duties generated by the Nigerian Customs Service, Udoma said they were equally projected to moderate downwards in 2017 before picking up , while recoveries of misappropriated funds are projected to increase later this year and the succeeding years as well as recoveries / refunds from strategic alliance contracts and recoveries of other misappropriated funds and fines.
Reflecting on the implementation of the 2016 fiscal plan which came into full force early May this year, the minister announced that N2.123 trillion out of the approved N6.06 trillion, representing 35 per cent of the total sum has so far been released to Ministries, Departments and Agencies (MDAs) of government for implementation of the 2016 plan.
He gave the breakdown of the releases as follows: “Recurrent expenditure has been largely covered as at June. Debt service – N598.63 billion; Statutory transfers, N175.68 billion; Overheads and SWV, N125.4 billion; Personnel, N891.31 billion; and Pension and gratuity N79.18 billion.
“Capital expenditure was as at July 18 N253 billion. This has largely been releases for MDAs utilisation on investment in critical infrastructure projects. Total aggregate of capital expenditure, inclusive of capital share in statutory transfer is N331.58 billion as at July 18.2016.”
Udoma expressed regret that revenue projection or forecast as overall revenue flow was short by 55.2 per cent, representing N1.064 billion as at June 2016. He added however that the shortfall was augmented by domestic borrowing of N600 billion out of the approved N1.818 trillion plan.
Meanwhile, the naira has lost more than 2.5 per cent in value at the interbank market, closing at N313 per dollar yesterday from N302.10 it started.
Already, blame has been put on the market’s inability to attract local or foreign investors with the much-sought greenback, as transactions quickly dried up in anticipation of interest rate hike from the Monetary Policy Committee today.
The interbank market just transacted $8.64 million yesterday, a volume considered too insignificant when compared with $100.54 million recorded on Friday, although it was spurred by the apex bank’s intervention.
On Friday, the currency had first hit the lowest point of N331/$ since the introduction of the flexible exchange rate regime, before recovering ground at the end of the day to N300/$. Two days after the maturity date, CBN settled its one-month forward contract worth $697 million, at the rate of N280/$, with outstanding forwards of $1.22 billion and $1.57 billion for two-month and three-month contracts respectively.
As a support to the falling confidence in the exchange rate, the one-month naira-dollar forward was quoted at N328/$, while one-year contract fell as low as N368/$.
Stock market investors (equities only) in the country recorded an appreciation in value of N1.461tn on their investments in the second quarter of this year.
Compared to the first quarter of the year, the Nigerian Stock Exchange market capitalisation closed at N10.165tn on June 30 from N8.704tn on March 31.
The NSE All-Share Index also moved to 29,597.79 basis points from 25,306.22 basis points in the same period.
Between January and March, the equities market had depreciated by 10.79 per cent, according to available data from the NSE.
As of the first day of trading this year (January 4), the NSE market capitalisation stood at N9.757tn, while the All-Share Index was 28,370.32 basis points. But as of the last day of trading in March, the market capitalisation and All-Share Index had crashed to N8.704tn and 25,306.22 basis points, respectively.
Equity investors had in the first seven trading days of the year lost N804bn of their investment worth. The market capitalisation after the close of trading on the floor of the Exchange in the first seven days closed at N8.953tn.
The All-Share Index also dropped from 28,370.32 basis points recorded on the first day of trading in 2016 to 26,034.94 seven trading days into the year.
A few weeks into the year, the downward trend in the Nigerian stock market prevailed with 10 out of the 12 indices of the NSE turning out negative.
The market capitalisation of the NSE had fallen by N811bn in the first 10 weeks of the year.
Market capitalisation is the total market value of the shares outstanding of all traded companies on the floor of the Exchange.
It dropped from N9.75tn on January 4, 2016 to N8.939tn 10 weeks into the year, while the All-Share Index also closed at 25,988.40 basis points in the same period from the 28,643.67 basis points recorded on the first trading day of the year.
Investors had also made huge losses in the Nigerian equities market last year, as the market capitalisation (equities only) of the NSE shed a total of N2.354tn between December 2014 and December 2015.
Financial experts tied the improved performance of the market on the Central Bank of Nigeria’s decision to introduce the floating foreign exchange policy.
They said the introduction of a forward market to hedge volatility in the foreign exchange market, and the licensing of foreign exchange primary dealers were innovations that had helped, to some extent, to reawaken the market.
The President and Chairman, Governing Council, Chartered Institute of Stockbrokers, Mr. Oluwaseyi Abe, said the implementation of the new forex framework had helped in boosting dollar supply, while ensuring some form of clarity in the currency exchange rate.
The naira to dollar exchange rate had been pegged for 16 months before the CBN reversed the policy. This had resulted in the dearth of dollars and prompted large-scale capital flight, with the attendant growth challenges in the capital market and the economy at large, he said.
The Minister of Finance, Mrs. Kemi Adeosun, will on Wednesday meet the World Bank to finalise Nigeria’s “policy support document” needed to complete its application for funds to help plug the $11bn budget deficit.
“What was delaying (budget support loans) was a lack of flexibility in the exchange rate…we now have that,” the minister said in an interview with the Financial Times on Sunday.
The President Muhammadu Buhari administration’s strategy also envisions heavy spending on infrastructure projects to jump-start growth.
Adeosun said the delayed passage of the 2016 budget had stalled the start of those projects to the fourth quarter. By then, she said, Nigeria would have secured funding from abroad for the record N6.1tn budget, quashing concerns that funding would not be available in time for the projects to begin this year.
The central bank’s decision last month to remove a 16-month-old peg on the value of the naira is the signal that international lenders, including the World Bank, have been waiting for, she added.
She also said the Federal Government was hopeful of an economic revival, even as the country slides into recession.
Low global oil prices have helped push Africa’s biggest economy into its worst economic crisis in decades. But many economists believe policies adopted by the central bank during the first year of Buhari’s presidency exacerbated the problem.
Adeosun said the government did not dispute the International Monetary Fund’s forecast last week that the economy would contract by 1.8 per cent.
“We’re simply saying that we have a very credible plan for dealing with the challenges we are facing, which we’ve been very honest about,” she said.
Although the minister thinks “there is still a long way to go,” the government is convinced that “diversifying and repositioning” the oil-dependent economy will bear fruit.
Part of that diversification includes the agricultural sector, where a boost in output is expected this year. Aggressive management of food price inflation, which includes low cost loans to farmers and improved distribution of fertiliser, will help bridge the shortfall in oil revenues, she said.
Investors have also viewed the greater flexibility in the foreign exchange market as a step in the right direction. But restrictions on hard currency allocation to import raw materials are still hurting manufacturers and leaving investors hesitant to bring their money back in.
