FDC BI-MONTHLY ECONOMIC & BUSINESS UPDATE – JULY 20, 2017

The Nigerian financial services industry has been a victim of the involuntary exchange rate adjustment associated with a weak currency.

Asset quality deterioration, liquidity tightening and capital adequacy challenges have reduced the strategic attractiveness of the industry to investors. In spite of the above threats, banking industry profitability has improved mainly due to exchange rate translation gains. However, under the forex depreciation and expected positive GDP growth we expect better performance from other sectors of the economy.

Nigeria’s forex market has also witnessed a convergence of exchange rates at the IFEX window and the parallel market. The equity market has been positively impacted by continued inclusion in the MSCI Frontier. This could make the CBN increasingly likely to consider working towards exchange rates unification.

This publication of the FDC bi-monthly analyzes such pertinent issues and breaks down the underlying implications on the various sectors of the economy.

Enjoy your read…