Nigeria: doing the painful thing

Nigeria is going to do the painful thing everyone said it has to do: the currency will be allowed to float freely. The governor of the Central Bank of Nigeria, Godwin Emefiele, said that the bank will intervene ‘as the need arises’. A weaker currency will help Nigeria's economy by encouraging import substitution and attracting foreign investors, who have shunned the country for fear of a devaluation. The move will be painful over the short term: inflation was 15.6% in April. The authorities will probably be forced to tighten monetary policy. Nigeria is Africa’s largest economy but it has soaring inflation. This latest action will not magically fix all of Nigeria’s problems - for example, lower oil prices and ongoing oil-production disruptions by the Niger Delta Avengers.

Pray: for honesty and fair trading, and for righteous acts that bring about economic recovery. (1Tim.6:10)