Central Bank of Nigeria
Virtual capacity building and training programme.
Virtual capacity building and training programme.
Thank you for taking part in our CBN Virtual Capacity Building and Training Programme.
It was a great pleasure to have so many of you join our colleagues to discuss our thoughts about the future and what is likely to shape it.
Below you'll find session replays - please do explore and feel free to share with colleagues that may have not been able to attend.
Below you'll find session replays - please do explore and feel free to share with colleagues that may have not been able to attend.
Key Takeaways
- The theme of technological competition between the US and China leading to Chinese adoption of a central bank digital currency is very relevant because it potentially releases EMs from the dollar trap.
- We highlight the relevance of the decline in risk premia for countries that trade with China in the scenario where China transitions towards consumption and the growing importance of China as an investment destination.
- We shared empirical evidence that of the major bond markets, returns wise, CNY bonds yield the most and provide the greatest diversification/risk-reduction benefits. Risk wise, CNY bond price volatility is among the lowest, as is currency volatility measured in USD. Therefore, by adding an allocation of good-yielding, highly-diversifying CNY bonds to one’s existing global bond portfolio, one can potentially achieve higher returns with lower overall volatility.
- The Energy Transition session revealed the obvious, that the Energy Transition is happening, and likely to accelerate. However, an energy transition is not an end to oil demand, of course, but low-emissions and low-cost will be essential. We believe that high cost oil, gas flaring, poor governance/safety/community performance will be very challenging.