Rate cut raises capital-flight risk, but FX buffers offer Nigeria cushion —Analysts - Tribune Online
Rate cut raises capital-flight risk, but FX buffers offer Nigeria cushion —Analysts - Tribune Online
Source: Tribune Online
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DW NOTE
The CBN just cut rates into an environment where the Fed is hiking and the 10-year Treasury yields 5.18%. Nigeria's forex buffers may look adequate today, but every basis point the Fed adds is a basis point pulling capital toward dollar assets. The cushion works until it doesn't.