Wednesday, 19 August 2020

CURRENCY SPOTLIGHT – NO LOVE FOR NAIRA


hnd holding naira notes
Lukman Otunuga,
Senior Research Analyst at FXTM 

Our emerging market currency spotlight this week shines on the Nigerian Naira which just can’t catch a break despite the Dollar weakening across the board!

Are you aware that many #Nigerian #exporters have been defrauded in the process of #exporting their #products? To #export successfully and get paid, click: http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html 

The local currency is trading around N475 per Dollar on the black-market exchange and could weaken further as foreign-currency shortages strain Africa’s largest economy. With export earnings diminishing due to depressed Oil prices, government revenues have taken a massive hit and the negative impacts may trickle through the economy.

To rub salt into the wound, inflation has jumped to its highest level in 27-months, rising 12.82% on the back of continued border closures and lingering effects of supply disruptions caused by COVID-19. If economic conditions fail to improve and Dollar shortages persist, the Central Bank of Nigeria (CBN) could run out ammunition to defend the Naira against external and domestic risks.

Wow!!! Have you discovered where #CEOs and top #managers take their #vehicles to for body work, painting with #Sikkens #paint and #oven #baking? It’s GOF AUTOS LTD. For details, click: http://www.tectono-business.com/2017/06/gof-autos-limited-best-automobile.html

Given how the CBN has already devalued the official exchange rate for the second time this year to N380, is another devaluation on the cards? Time will tell.

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