Nigeria

Nigeria: The factors driving the Naira’s collapse on the parallel market

  • After just breaking through 600/US$ in mid-May, the NGN has exploded to 700/US$ on the parallel market yesterday

  • Explanations include higher FX demand for school fees and campaigning, rising money supply and panic buying

  • Parallel depreciation will likely persist without interventions to balance market, which we think are unlikely

Contributors
July 28th, 2022
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