Columns

Why the New Interbank Market Must Not Fail, By Uddin Ifeanyi

At the heart of the crisis in the new interbank market, then, is a disagreement about what is fair value for the naira. An out-of-pocket CBN that is reported to have assured the fiscal authorities that this value stands around US$1/N250, is hoping to attract interest from an investor community…
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Opinion

Re-introducing and Operationalising Nigeria’s Flexible Exchange Rate Market, By Godwin Emefiele

...let me note that the Central Bank is strongly determined to make this market as transparent, liquid, and efficient as possible. Therefore, we would neither tolerate unscrupulous behaviour nor hesitate to bring serious sanctions on offenders. The CBN expects all authorised dealers particularly to display the highest level of professionalism.…
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Opinion

Much Ado About Nigeria’s Yuan Swap Deal, By Nonso Obikili

Basically option 3 means that if you route your imports from China through Nigeria, then you get a 65% discount courtesy of the And everyone loves a discount. Recall how we started, allegedly, importing fuel for the whole West Africa because of fuel subsidy? Just replace fuel with Chinese goods…
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Columns

Interrupting The Naira’s Winter Migration, By Uddin Ifeanyi

...to argue against the market because of a set of arbitrary developments (in all likelihood a one-off intervention on Wednesday that saw more dollars introduced into the market than has been the quotidian trend since the year began) is to substitute a subjective randomness for a more objective one. In…
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Opinion

Naira Devaluation and the Nigerian Economy – Focusing on the Big Picture, By Nonso Obikili

Here in Nigeria we see similar echoes of state-led collapse in certain sectors of the economy. The government controlled and fixed prices for refined fuels and slowly but surely the downstream section of the oil industry has collapsed. The government controlled and fixed prices for electricity and the power sector,…
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Opinion

President Buhari, We Are Killing Jobs Not the Naira, By Akin Oyebode

In a recent interview with the BBC, President Buhari said: “I have asked the Central Bank Governor and others to sit and see if they can convince me to murder the Naira.” He also said: “Most of our young people can’t get jobs; one of the biggest dangers we face.”…
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Opinion

The Naira Exchange Rate Conundrum, By Olusegun A. Oyediran

In a nutshell, naira devaluation or a flexible exchange rate mechanism that erodes naira currency value is not in the best interest of Nigeria at this point in time. A widely-held axiom is that export-dependent countries prefer lower values for their currencies, while import-dependent countries prefer higher values for their…
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