A new report by the pan-African credit rating agency, Agusto & Co, has backed the decision of the federal government to sell assets to fund critical infrastructure.
It stated that the COVID-19-induced economic crisis creates a perfect storm to implement market-friendly reforms that had long been in the books of the federal government. According to Agusto & Co., Nigeria’s long-term high inflation is an often overlooked economic indicator with exchange rates enjoying greater prominence in the discourse.
It stated that outside the management of COVID-19-related disruptions to the economy, foreign exchange in Nigeria would be the most consequential economic issue in 2021. “The odds against the naira in the foreign exchange market are in two folds. First, there are the long-term fundamental issues. With naira inflation projected to be stubbornly stuck above 15 per cent in 2021 and dollar inflation at a benign two per cent, the odds against the naira indicate an inflation rate differential of about 14 per cent between the two currencies.
“With foreign reserves stubbornly stuck below the $40 billion threshold since mid-November 2019, and currently around the $35 billion mark, the CBN has less dry powder to defend the naira at N390/$.”
Why are you doing this to this Niger-Area Why this cruelty? The money you are sharing around indebting us would be better used to build lasting solutions to poverty 5000 to 24.million. 20,000 to millions, 30,000 survival rubbish, 20,000 to 774000 for 3months Allah ya Isa
If they like let them sell ASO Villa, na them Sabi
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