March 24, 2020/Coronation Weekly

The Central Bank of Nigeria (CBN) last Friday changed the rate in the principal foreign exchange markets by 3.6% in US dollar terms. This looks like a swift adjustment to the pressures in the markets and suggests flexibility. When it comes to the Monetary Policy Rate (MPR) to be decided by the CBN’s Monetary Policy Committee (MPC) today, the way may be open to adjust the headline 13.5% rate downwards, in our view, as a response to economic pressures caused by the coronavirus.

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