In 2016, the adoption of the flexible exchange rate policy initially led to a major depreciation of the Naira. This was because, in reality the CBN adopted a managed fixed rate. In Q1 2016, $3.51bn was deployed into the market and the Naira fell by 17.39%. In the same period in 2017, with only 68% ($2.41bn) of the amount, the Naira has appreciated by 25% because of a more transparent process.
Nigerians have gone from despair to anxiety in 2017 and will be more hopeful if the strengthened currency is accompanied by an increase in economic activity.
In the attached slides presented on Channels TV Business Morning Program, Bismarck Rewane explains how and why the economy in Q2 will be brighter than the previous quarter.
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