Global markets soared after Trump paused tariff plans
Global stocks jumped sharply on Wednesday after President Trump unexpectedly announced a 90-day pause on his “reciprocal” tariffs, with the S&P 500 climbing 9.5 percent by market close.
Wall Street reacted positively to the policy reversal, showing relief that President Trump would not immediately implement most of his planned tariffs, which had caused markets to plummet and threatened global trade. However, the tariff relief won’t apply to China, one of America’s largest trading partners. Instead, Trump said he would increase tariffs on Chinese exports to 125 percent after Beijing announced new retaliatory measures.
China’s Yuan fell to its lowest in 18 years
China’s yuan fell on Thursday to its lowest value against the US dollar since the global financial crisis. The central bank reduced its guidance for the sixth trading session in a row as trade tensions between China and the United States grew worse. China has put heavy tariffs on US imports to match similar actions by the US. Although US President Trump recently said he would temporarily lower tariffs imposed on many countries, he increased those on Chinese goods.
A weaker yuan would help make Chinese exports cheaper and reduce the impact of tariffs on China’s economy. However, if the yuan falls too quickly, it could cause unwanted money to flow out of the country and create financial stability risks.
The mainland yuan dropped to 7.3518 per dollar in early trading, its weakest level since December 26, 2007. It has lost about 1.2 percent this month and was last down 0.03 percent at 7.3464 as of 0313 GMT. The offshore yuan was at 7.3592 at 0313 GMT, down 0.17 percent. It reached an all-time low of 7.4288 on Tuesday.
Personal remittances reached $20.93bn in 2024, according to the CBN
The Central Bank of Nigeria has announced that personal remittance inflows increased to $20.93 billion in 2024, showing an 8.9 percent growth compared to the previous year.
The central bank shared this information via a statement on its website, which also reported a balance of payments surplus of $6.83 billion for the 2024 financial year.
This surplus is a major improvement from the deficits of $3.34 billion and $3.32 billion recorded in 2023 and 2022, respectively.
The CBN explained that this improvement resulted from a combination of economic reforms, better trade performance, and renewed investor confidence.
According to the statement, remittance inflows remained strong throughout the year, with money sent through International Money Transfer Operators increasing by 43.5 percent to $4.73 billion, up from $3.30 billion in the previous year.
Fuel prices may drop as the FEC renewed the naira-for-crude deal
Oil marketers have announced that Nigerians will soon experience relief as the price of Premium Motor Spirit, commonly known as petrol, is expected to drop significantly. This reduction is due to the Federal Government continuing its initiative of selling crude oil and refined products in naira.
They also mentioned that Dangote Refinery, a major industry player, may reduce its petrol loading costs by the end of this week, which will further help lower fuel prices.
Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, confirmed the upcoming price reduction while discussing the Federal Executive Council’s directive about the naira-for-crude agreement, which was announced on Wednesday.
However, the official could not estimate how much prices would drop since it’s still unclear what price the government will charge for its products.
China’s retaliatory 84% tariffs have gone into effect
China’s countermeasures against the US have come into effect, raising tariffs on all US imports to 84% in retaliation against Trump’s tariff hike on Chinese imports to 125%.
The trade war between the world’s two largest economies has reached extreme levels of tariffs and counter-tariffs, with both sides standing firm.
Beijing has vowed to “fight to the end,” refusing to back down as Trump tries to pressure world governments to negotiate.
China first announced 34% tariffs to match Trump’s initial round on what he called “liberation day.” Trump warned China to remove these tariffs or face higher ones. When China refused, both countries began a series of escalating tariff increases. After Trump announced 125% tariffs on Chinese imports, Beijing responded with 84% tariffs on US products, which are now in effect. China has also placed 18 US companies on trade restriction lists and implemented other measures.
