Dear Subscriber,

The scheduled commencement of international flights as from August 29 has triggered a surge in speculative demand for dollars in the parallel market. The Naira fell from N475/$ to N480/$ in one day. Traders, students and medical tourists are all revving up for a September rush. This is a side effect of the forex rationing by the CBN.

The exchange rate devaluation pass through effect on prices is already showing up in the inflation data which is now at a 28-month high of 12.82%. We expect food inflation to moderate in the months ahead.

The great news is that it will take at least 6-12months before the demand for travel will come close to the pre-Covid era. Therefore, there is no need to panic as the naira will recover some of its lost ground even though it will not get back to the 2019 levels of N365/$.

The slides in the download summarize the discussion in the Commodities segment of the Business Morning programme on Channels TV by the FDC Think Tank analyst. It also provides an overview of developments in the domestic and global commodities market and its likely impact on your business strategy.

Enjoy your read!