CBN report points to more Naira devaluations   


Dec 27 (Lagos) - As the Christmas holidays ended, the Central Bank of Nigeria has disclosed that a survey carried out by its Statistics Department revealed that the naira is expected to depreciate further in January 2021. The report is titled ‘December 2020 Business Expectations Survey Report’ by the statistics department who have spoken to more than 1000 businesses and received their views. 


So the survey revealed things that are common knowledge to long term financial analysts who have been around and seen it all.


Inflation is expected to go higher - of course this is already known. Oil prices are on the up again, Naira is always devaluating so there is no way inflation rise will stop until the base is so high that the increases stop looking like they are major. Crude oil prices go higher and that will mean government will want to increase petrol price leading tensions.

Interest rates to go higher - Again, the CBN should have never artificially lowered the interest rates arbitrarily in the first place. When you start dictating what the interest rate should be, then you are just hoping for a miracle. 

Exchange rate - Any student of economics can tell you that lowering interest rates means invitation to depreciation in your currency. And to do that in 2015 Nov to a currency which was weakening sharply, we know the results and hindsight is 20/20. 



So 2021 is just around the corner. While we want to celebrate and say happy new year to each other we don't know what is coming. CBN Governor has won awards for his leadership at CBN so he is likely to be the one to buckle the trend.



HOPEFULLY THIS REPORT DOES NOT COME OUT TO BE TRUE HERE IS HOPING FOR A BETTER 2021



reporting for easykobo.com on Sunday, Dec 27 2020 from Lagos, Nigeria



Source - photos - CBN Governor receiving best of Africa award and Forbes award. 
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