The Unholy Union Between the Naira and Devaluation

In 2020, the Naira lost 25% and 27% of its value at the NAFEX and parallel exchanges, respectively. This quickly disrupted my plans, as I had planned to upskill and purchase some courses priced in dollars at the onset of the year. My disappointment prompted me to visit the CBN’s website in search of its policy stance per the Naira. The website says the apex bank’s exchange rate policy is managed floating – a market-friendly term adopted by developing countries who operate some form of pegged regime. I murmured, why did the Naira not appreciate, and why is it always under severe downward pressure?

Is a Wave of Bankruptcies Heading for the Offshore Oil Industry?

Offshore drilling major Valaris became the latest victim of the crisis this week as it filed for bankruptcy in the U.S., proposing a swap of some $6.5 billion in debt that will see creditors become its owners. But it is just the latest headache for offshore drillers. There is more than $20 billion in offshore drillers’ debt still out there—and there are not many new drilling contracts.

Can OPEC+ Still Justify Its Deep Output Cuts?

OPEC+ compliance rose sharply in June, helping to tighten up the market. The improved compliance also boosted confidence and cohesion in the group’s collective effort ahead of a possible loosening of the supply curtailments. Perhaps counterintuitively, that increases the odds that the group increases production beginning in August.

US Shale Could Crash the Oil Market Recovery

The oil price crash was the result of a severe decline in international oil demand thanks to the spread of the novel coronavirus, made infinitely worse by an ensuing oil price war between the leading OPEC+ members of Saudi Arabia and Russia.

Why the Central Bank of Nigeria will Devalue the Currency in 2020

With the Coronavirus outbreak having its toll on business and economic activities, recently released trade figures as well as policies not having their desired effects, we believe that there will be an unexpected naira devaluation in 2020. This is why we explained our reasons in this article.

What is the Impact of Coronavirus on the Nigerian Economy?

An Introduction Though started on December 30 2019 when Dr. Li Wenliang dropped bombshell in his medical school alumni group on WeChat about the kind of illness he had seen from seven patients, the coronavirus was officially recognized by the Chinese scientists on January 7, 2020. According to NYTimes, the virus has sickened more than […]

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