Jan 24 (Lagos) - The Naira is about to touch 1400 against 1 USD in the parallel markets and will probably do so by tomorrow going by its recent downward momentum. The CBN have also stopped issuing any statements of hope like they did towards the did of 2023.
The latest decline is taking place as the US Secretary of state is currently visiting Nigeria and met with CBN Governor. The foreign secretary of India was also in Nigeria earlier this week. There seem to be some important discussions related to trade especially crude oil deals that could have taken place between the Countries.
Inflation keeps raging through the economy and food prices are going through the roof. Even with the high denominator, inflation is no where near showing any signs of slowdown. Business community already expecting the worst and any hope that was still there seems to have lost now.
There is no improvement in the cash availability at Banks and people continue to buy money, yes buy money. Its true no matter how many times you read that to make sure. CBN is now 'mum' on the situation and as a result has lost credibility that they generated when they blamed all the wrongs on the past CBN Governor.
The only beacons of hope left seems to be the Dangote Refinery, that it will help the Country save forex and the Nigerian stock market where prices are keeping up with the inflation and devaluation to some extent however as noted by Professor Ekekwe, this is not going to touch the masses of Nigeria who have no clue about how to invest in stock market and don't have the capital to do so.
So the US Dollar seems to be the best investment in town and looks like the bad players will be winning again and laughing at those who trusted the Nigerian financial system.
reporting for easykobo.com on Wednesday, Jan 24 2024 from Lagos, Nigeria