The Naira continues to experience stability despite an unexpected rate cut from the Central Bank of Nigeria earlier this week.

This is highly encouraging and suggests that the currency has scope to appreciate if macroeconomic conditions in Nigeria stabilize further. With the jump in Brent Oil prices boosting government revenues and pushing foreign exchange reserves to $44 billion, the CBN has ammunition to defend the currency. However, external risks in the form of global growth concerns and trade developments could still create headwinds for the Naira further down the road. It must be kept in mind that the Naira is not alone, as many other emerging market currencies are also feeling the pressure.

Reporting for EasyKobo on Thursday , 28 March 2019 in Lagos, Nigeria

Source: Lukman Otunuga, FXTM Research Analyst