Goldman Says Devaluation on Cards Again for Naira as Oil Sinks
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Nigeria may have to devalue its naira again as sliding oil prices triggered by US President Donald Trump’s trade war pressure the budget of Africa’s largest crude producer.
“The natural policy response to lower oil prices is a depreciation of the naira, as this boosts oil revenues in naira terms,” Goldman Sach Group Inc. economist Andrew Matheny said in an interview. “Given that the oil-production assumption in the budget is already optimistic, risks are in our view tilted toward fiscal slippage.”