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New moves may modestly help Nigeria steady the naira

Content type:: Expert Briefings
Location:: NIGERIA
Keywords associated with this article:: Geographic: Nigeria AF

Topical: economy banking capital flows exchange rate foreign investment monetary
ISSN:: 2633-304X
Citation:: Oxford Analytica (2023), "New moves may modestly help Nigeria steady the naira", Expert Briefings.
https://doi.org/10.1108/OXAN-DB283588

Friday, November 24, 2023

Significance

Finance Minister Wale Edun on October 23 announced that a major inflow of USD10bn was expected in the coming weeks to ease liquidity in the foreign exchange market. The announcement aims to stabilise the currency and encourage convergence between the Central Bank of Nigeria (CBN) official dollar exchange rate and the unofficial parallel market rate.

Impacts

Increased dollar liquidity in the banking sector could stimulate the economy.
Tensions may arise between the CBN and President Bola Tinubu over rate-setting decisions.
The CBN may be able to roll over some of its forex forward contracts to buy time as it raises funds.

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Significance

Impacts

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