Central bank moves may check Nigeria's currency fall

Significance

These aim for tighter CBN control over the parallel market. The CBN is also seeking to stabilise the currency through bond issuances, cryptocurrency crackdowns and other schemes.

Impacts

• Inflation will remain high, especially as the government will struggle to lower food prices.
• The coming months may see more CBN interest rate increases.
• The BDC regulations could spark a round of consolidation in the sector due to higher capital requirements.