Evolution Not Revolution in FX Thinking

FBNQuest Capital Nigeria 2021 Research Outlook

By FBNQuest Analysts Our simple chart is almost symmetrical and neatly conveys the recurring challenges at the heart of exchange-rate policy. Between June 2017 and February 2020 fx was freely available. The differential between the official/interbank rate and that at the bureaux de change was constant. Up to May 2017 and since March this year, fx has been in short supply and the spread considerably wider. The turbulence either side of the period of calm reflects pressure on the balance-of-payments and reserves. As the sequence of events has repeated itself…

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