Naira currency misalignments from EQChange

The CEPII has a new database on equilibrium exchange rates for 180 countries since 1973. You can read more about their methods┬áhere. Such data is useful for examining currency misalignments, especially comparing it across countries. I poked around it a bit to see what the Nigerian story is. The interesting thing is the volatility, at… Continue reading Naira currency misalignments from EQChange

Naira Struggles: The Thing With Expectations

This is how exchange rates and peoples’ expectations about the value of a currency interact; Your domestic currency is the Naira. You have some business to transact in the near future which requires the use of foreign currency, for simplification we will assume US dollars. You cannot see into the future though, so you have… Continue reading Naira Struggles: The Thing With Expectations

CBN Naira struggles and market gimmicks

The CBN acted during the week to shore up the Naira and probably tackle rising inflation which has risen to above the single digit target. One thing is clear: things are not looking good. The naira is desperately trying to shed some weight and inflation seems to be back to the fore. The CBN is… Continue reading CBN Naira struggles and market gimmicks