Few days before the Central Bank of Nigeria [CBN], was set to decide on interest and exchange rates, Nigeria’s currency, the Naira, spiraled to a record 6 year-low. Economy Watch report.
This dip has occurred in the wake of financial powerhouses [Morgan Stanley and Renaissance Capital] forecasting a decline for the currency. Aggravating the situation further was dangerously low oil prices.
The Naira fell to about 190 against the mighty dollar. That amounts to a drop of nearly 3%, the most in a week. This was before cutting back on trading losses, which occurred at 190.30.
Experts have speculated that the Naira will probably drop to 220 by the end of fiscal year, 2015. A reputed sub-Saharan Africa economist, working for Renaissance Capital, stated this recently.
The decision by the Organization of Petroleum Exporting Countries to leave output targets unchanged after the quickest oil slump since the 2007 global recession has greatly increased risks to Nigeria’s economic outlook, impacting the nation adversely as Nigeria is Africa’s largest oil producer and exporter.