My article in the guardian yesterday was about the central bank’s foreign reserves, what it means, and why we care about it. You can read it online here. Two things I did not mention in the article due to space constraints. First, its great that the foreign reserves are much higher than the lows we saw… Continue reading Much ado about the foreign reserves + Extras
I wrote an essay on Nigeria’s foreign exchange struggles since the last crude oil boom ended in 2014. Worth reading if you want a bit of context on how we got here and what we should be doing next. Note: It was written before the “windows” policy was implemented but the inference is still… Continue reading Naira Struggles: Nigeria’s Response to the Crude Oil Price Shock of 2014
This is really becoming tiring but we must. The central bank announced yet another intervention program disguised as a policy yesterday. The policy may be in response to marching orders received by the central bank governor during the last FEC meeting to reduce the spread between the interbank and black market. The spread has risen… Continue reading Naira struggles: And another one….
We seem to fall into a recurring cycle of bad policy with regards to the foreign exchange market. It is possible that policy makers implement bad policy by accident. However it is also possible that policy makers implement bad policy by design. Could bad policy in the foreign exchange market be the result of political… Continue reading The political economy of BDCs and black market premiums
As we think about the road out of recession, the CBN has to focus on getting back to macroeconomic stability. We cannot come back if there are two exchange rates for the same currency. My piece in the guardian today. Read here
The central bank finally provided details of its new foreign exchange policy which is set to kick off on Monday. Finally the currency peg is gone and, in a positive surprise to almost everyone, the price fixing is also gone. In summary, the central bank will no longer attempt to directly fix exchange rates and… Continue reading Free at last
If you are not fazed by some simple economics and you want to understand why it was in Sanusi and the CBN’s interest to shine a light on activities at the NNPC, you should read the article I wrote for PolicyNG linked below. http://blog.policyng.com/read.php?rid=124