May 10 (Lagos) - Investors were caught completely off guard this week after Nigeria’s President Muhammadu Buhari reappointed the CBN governor Godwin Emefiele for a second term.
Although the market reaction has been somewhat mixed with the All-Share Index (ASI) edging -0.26% lower today, it is too early to come to any conclusions about how this will impact domestic markets moving forward.
With the re-appointment of the CBN governor signaling continuity and removing an element of uncertainty over policy direction, this could be a welcome development for local shares and the Naira.
However, more time will be needed to carefully assess what this means for inflation, interest rates and economic growth in the medium to longer term.
Source -
Lukman Otunuga, FXTM Research Analyst