Home Politics The effects of Trump’s administration on Nigeria’s foreign stance and financial system—FDC,...

The effects of Trump’s administration on Nigeria’s foreign stance and financial system—FDC, EIU

40
0

The effects of Trump’s administration on Nigeria’s foreign stance and financial system—FDC, EIU

According to Mr. Bismarck Rewane, Managing Director/Chief Executive Officer of Financial Derivatives Company (FDC) Limited, there are signs that Donald Trump’s win in the US presidential election may have a big impact on Nigeria’s financial system and external economic standing.
According to Rewane and his team’s recently released Lagos Business School (LBS) Executive Breakfast Presentation for November, Nigeria may have to pay more for borrowing from outside sources and repaying its debts because the Economist Intelligence Unit (EIU) predicts that a Trump victory could strengthen the US dollar and raise interest rates.

Nigeria’s already significant external debt obligations, estimated at $112.3 billion, may become more difficult to handle if the naira depreciates against a higher dollar.

The effects on Nigeria and other emerging nations are multifaceted and include commerce, immigration, climate change, and geopolitics. Nigeria has profited from worldwide banking credit but has not much benefited from trade flows due to its lack of geopolitical alignment. Regarding immigration, remittances from Nigerians living abroad have reached a height of almost $24 billion a few years ago.

The key takeaway from this is that a strong home economy should be prioritized. If this isn’t done, the stereotypes of a sh*thole nation will be strengthened.

where a large number of young individuals are sending money and emigrating. There will be a reversal of the Japa syndrome. This is a wake-up call for Nigerian leaders to revitalize the country’s economy.

The exchange rate decision method is one of the main concerns that requires immediate attention. The naira trading at less than 30% of its fair value in less than a year is not supported by any economic rationale. For four straightforward reasons, we firmly predict that the naira will regain some of its losses in January 2025:

There is almost no longer any difference between the official market rate and the parallel market rate. At least 30% of the value erosion brought on by speculative roundtripping was caused by this.

The amount of money flowing into the market, which is influenced by the price and production of oil.

The CBN ought to and, in our opinion, will announce to the market a dollar sales program like to the T/Bill auction. The company said, “This will help reduce market uncertainty.”

Join Our Social Media Channels:

WhatsApp: NaijaEyes

Facebook: NaijaEyes

Twitter: NaijaEyes

Instagram: NaijaEyes

TikTok: NaijaEyes

READ THE LATEST POLITICS NEWS

LEAVE A REPLY

Please enter your comment!
Please enter your name here