Swimming against the tide?

In case you have not heard, the US has started raising interest rates which, as expected has led to pressures in emerging markets. Most of the markets have seen some turbulence recently but not Nigeria. Those with a keen eye will know this has a lot to do with our de facto fixed exchange rate regime.

There is a deeper philosophical question for Nigerian policy makers though. If all our peers our moving in one direction, should we swim against the tide and stand alone? Or should we go with the flow and roll with our peers? Of course we are unique in the sense that we already had a hard landing recently and our major export, crude oil, is still looking north. Still its interesting to think about, especially in the context of further rate hikes in the US coming soon. Should make for an interest year regardless.

Image is from Bloomberg.

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