With varying international and national media reports adjusting to commenting on the possible impending doom of the Nigerian economy, less than 24 hours ago the naira saw a tremendous leap from devaluation after months of head scratching.
According to This Day Live, the Nigerian daily wrote on their site the naira fell to an all-time low of about N400 to a dollar on the parallel market last week fueling concerns that it would plummet further to N450-N500/$ this week.
It is plausible to assume and verify some of the causes of devaluation; Boko Haram, the sharp drop in the price of barrels of crude oil, economic unrest specifically in the Northern, Delta and Biafran/Southeast region, insurrection, and ever-present corruption are chronic cancers that beset the country on this path.
But why exactly has the naira seen an unforeseen rise as of late…here we list the possible causes. Is there hope for Nigeria yet?
- Buhari’s staunch stance to not devalue the naira despite domestic and international urging
- Psychology: studies attribute that what people think will happen actually alters what happens in economic markets, possibly the thought of staging a massive devaluation for the African giant actually had an adverse effect, albeit a positive one
- #BuyNaijatoGrowtheNaira a positive social media campaign driven forward by arguably the most social senator in Nigeria; Ben Murray-Bruce in the month of February could have actually worked, although it would really be to soon to tell
- The Central Bank of Nigeria is averting a possible imminent collapse, looking to invest in a two-tier foreign exchange market and Islamic banking among other platforms.
Wednesday, the naira stands at about 1 naira/$0.00503 with the inverse of 198.980 naira.