With Nigeria juggling with volatile oil prices, rising inflationary pressures, and wounds inflicted by strict lockdowns, members of the private sector have expressed worry about the weakening exchange rate. Already, Nigeria’s foreign trade volume fell from N10.12 trillion in the Q4 2019 to N8.30 trillion in Q1 2020, according to the latest report from the National Bureau of Statistics (NBS). “Thus, in emerging markets and developing economies’ (EMDEs) EMDEs, where dominant currency pricing is more common, the reaction of export quantities to the exchange rate is more muted and so is the short-term boost of depreciation to the domestic economy. “Nevertheless, we are weary of the implication of the sudden unification of the exchange rate to the economy at this time. We believe this will be counterproductive, as the nation depends hugely on importation of raw materials, equipment, fuels (most especially).

Source: The Guardian July 24, 2020 04:30 UTC