Naira Volatility Undermines Economic Stability

The naira has oscillated like a swinging pendulum in February. After going as low as N405/$, it has recovered to N320/$ this week. Investors, traders and manufactures are jittery as to if and when an official currency adjustment is likely to happen. At the official window, the CBN is publishing a list of beneficiaries of IFEM, but the market remains wary.

The inflationary impact of a weaker naira has taken its toll on the economy. We expect a sharp increase in inflation with a best case scenario of 9.8% or worst case of 10.2%.

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