Why does the naira keep falling?
The official exchange rate of the naira, Nigeria’s currency, has undergone a noteworthy transformation. Before the FX reforms, it stood at ₦462/$. However, in the aftermath of these reforms, specifically as of August 17, 2023, it has plummeted to as low as ₦746/$. There are two core reasons. Nigeria is grappling with persistent foreign exchange supply challenges and a substantial backlog of demand. Consequently, the official and black markets have witnessed pressure leading to a downward spiral of the currency. Our comprehensive charts meticulously dissect the factors driving the naira's tumultuous trajectory.
In an intriguing turn of events, the Central Bank of Nigeria (CBN) unveiled its financial statements after a seven-year hiatus. These statements shed light on the CBN's financial performance spanning 2016 to 2022. This revelation guides our recent analysis that delves into the cost of the CBN's strategy to safeguard the naira and how they have influenced the bank’s financial performance over the last decade.
Switching gears, a significant jolt reverberated across international markets on August 1, 2023, when Fitch Ratings downgraded the US credit rating from "AAA" to "AA+." The implications of this credit downgrade ripple beyond the US, raising pertinent questions for African investors and countries. We dissect the implications of this downgrade in our latest article, providing insights into its potential effects.
Drawing from meticulously collected data from the Central Bank of Nigeria (CBN), the Nigeria Interbank Settlement System (NIBSS), and the National Bureau of Statistics (NBS), we've outlined nine pivotal trends that have defined Nigeria's expanding digital payments market over the past decade. Our analysis provides a comprehensive overview of this dynamic sector.
Shifting our focus to Kenya, a recent decision by the Energy and Petroleum Regulatory Authority (EPRA) has captured attention. Despite global spikes in fuel prices, EPRA has implemented a fuel price freeze. This move prompts a significant question among Kenyan citizens: is the fuel subsidy making a return? Our Energy Insights Lead answers this question comprehensively in an insightful piece.