According to Vanguard, a media company, Nigeria is likely to face tough times ahead, considering the trend of falling crude oil prices, exacerbated by the global economic hit caused by the Coronavirus.  Oil and gas represent over 90 percent of the country’s foreign exchange earnings and more than 60 percent of oil related income.  With the slowdown in petroleum consumption in key economies (such as China, India, Japan, France, among others) driven by overall restrictions imposed to contain...

A special fund valued at USD 730 million will be set up by the Islamic Development Bank (IsDB Group) to manage the negative impact on health and socioeconomic factors caused by the Coronavirus outbreak. The Bank and Islamic Solidarity Fund for Development, plans to contribute USD 280 million for sovereign projects and programs. The remainder will comprise of USD 300 million from the International Islamic Trade Finance Corporation (ITFC), for trade finance, and USD 150 million from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), for...

With the spiking number of COVID-19 cases in Turkey, Berat Albayrak, Turkey’s Treasury and Finance Minister stated that the Turkish President Recep Tayyip Erdogan is expected to unveil several steps to reduce the economic consequences of COVID-19 this week. The Treasury and Finance Ministry along with non-governmental organizations and sector representatives such as the Turkish Industry and Business Association, Turkey's Foreign Economic Relations Board (DEIK), as well as Turkey's Independent Industrialists' and Businessmen's Association (MU...

Following a rate cut by the United States’ Federal Reserve on the 16th of March 2020 to near zero levels, the Central Bank of the United Arab Emirates (UAE) also announced rate cuts, (effective 16th of March 2020) to provide additional support to the COVID-19-hit economy. Interest rates on one-week Certificate of Deposits (CDs) were reduced by 75 basis points (bps), while maintaining Repo Rates applicable to short-term liquidity borrowings against CDs at 50 bps above the 1-week CD rate. Rates pertaining to the Interim Margin Lending Facility and the Coll...

The Central Bank of Egypt (CBE) has announced that it has introduced preventive measures to counter the impact of COVID-19 on Egypt’s banking industry. The CBE stated that all local banks have been instructed to facilitate Egypt’s import operations by providing sufficient credit facilities against the import of basic and strategic essentials, such as food commodities, as required by the country’s market. Other measures taken by the CBE included instructing banks to cancel all fees and commissions applied against sales and...

Pakistan’s Islamic Banking sector includes four fully-fledged Islamic banks, and 17 conventional banks that have Islamic banking services. Data released by the State Bank of Pakistan, in its Islamic Banking Bulletin (IBB), showed that the assets within the Islamic banking industry increased 9.6% YoY to reach PKR 3.28 trillion. This raised the sector’s share of assets to 14.9% at the end of 2019, compared to 9.4% reported in March 2014.  Looking at modes of financing within the Islamic banking industry in 2019, Diminishing Musharakah was the market leader with 34.1% share, fo...

To improve the country’s liquidity position, the Central Bank of Jordan cuts its compulsory reserve rates for commercial banks to 5%, from 7% previously.This was done to potentially inject over JOD 500 million (USD 705 million) into the economy.In efforts to help individual borrowers and ease losses incurred by private sector firms, Central Bank Governor, Zaid Fariz, stated that commercial banks were asked to delay payments of loan instalments by companies, and to reschedule retail loans without penalties to the customers.While the International Monetary Fund forecasts 2.1% economi...

Higher manufacturing exports allowed Indonesia to record a USD 2.34 billion trade surplus in February 2020, amidst disruptions in trade activity with China (its largest trading partner) due to the COVID-19 outbreak, as reported by Statistics Indonesia (BPS).Data from BPS indicated that total exports out of Indonesia stood at USD 13.94 billion in February 2020, up 11% YoY, led by manufacturing exports which experienced the strongest growth at 17.11% YoY in February 2020, reaching USD 11.03 billion. Rising exports of jewellery and precious metals to Singapore was the main contributor to the in...

With the increasing economic disruption due to the spread of COVID-19, Islamic Finance umbrella organizations have issued statements pledging support to their member countries. Institutions such as the Islamic Development Bank (IsDB), Malaysia-based Islamic Financial Services Board, and the Association of Islamic Banking and Financial Institutions Malaysia, have expressed their concerns regarding the socio-economic disruptions, loss of lives, health and safety of member representatives and staff, the impact on member countries’ health systems, as...

Malaysia’s new Government introduced another financial stimulus package of around USD 230.4 million (MYR 1 billion) on the 16th of March 2020, to help Malaysians cope with the impacts of an increase in the spread of COVID-19 across the country.According to local media, these funds would be used to provide a limited stipend for workers on unpaid leave, discounts on electricity bills, additional pay-outs for public financial aid packages, as well as for the roll-out of micro-project packages.In February 2020, the Government launched a USD 4.7 billion stimulus package, the first to assi...