Nigeria's Naira More Likely to Follow Egypt’s Playbook Than Ghana’s
- High oil prices, dollar flows support currency’s outlook
- Nigerian yields are among the highest in emerging markets
Photographer: George Osodi/Bloomberg
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For investors considering the fate of Nigeria’s naira after the central bank’s unexpected rate cut on Tuesday, Egypt may be a better guide than Ghana.
Both Egypt’s and Ghana’s central banks cut their main interest rates earlier this year, surprising most analysts surveyed by Bloomberg. But their currencies reacted differently. The Egyptian pound has since strengthened against the dollar and is one of the world’s best-performing units this year. Ghana’s cedi has tanked.