Wednesday, March 27,
2019 04:19 PM /by FDC
The Brexit saga will have an impact on the performance of the Nigerian external sector. This is because it is inextricably linked to the value of the pound sterling in the forex market. 35% of Nigerian diaspora flows come from the U.K. Therefore, a 5% drop in the value of the pound sterling will translate into a 7% decline in dollar receipts and a slump in the trade balance.
Brent rose 0.34% to $68.20pb as expectations of lower US crude inventories outweighed concerns of weaker oil demand due to a global economic slowdown. A higher oil price is positive for Nigeria’s fiscal and external revenues.
The slides below address these and other issues in the domestic and global commodities market.