Investor Presentaiton
Inflation & Exchange Rate
Inflation
✓ Depreciation of the Naira along with supply shocks attributed to
COVID-19 led to a gradual rise in inflation.
✓ Inflation ticked at 12.40% yoy in May 2020 relative to 12.34% in
April 2020
✓ We, however, expect inflation to begin a downward trend in Q4
2020 given strengthened emphasis on improving productivity in
the agriculture and manufacturing sectors
Inflation & MPR
(% yoy)
Exchange Rate
✓ Given the drop in crude oil prices, and its impact on the foreign
exchange earnings, NGN/USD rate experienced a 18%
depreciation at the official exchange rate window
Exchange rate adjusted from N305/$ to N360/$ in March 2020
Band between the official exchange rate and the NAFEX window
continues to narrow. N/$ rate at NAFEX window depreciated
from N360/$ to N385/$
✓ CBN will continue to work towards a gradual unification of rates
across all FX windows
NGN/USD Exchange rate
9.4
18.7
16.5
13.0
12.0
14.0
16.3
15.1
11.2
13.5
450
400
12.5
350
11.0
12.4
300
250
200
Sep-15
Apr-16
Nov-16
Jun-17
Jan-18
Inflation
Aug-18
MPR
Mar-19
Oct-19 May-20
May-18
Sep-18
Jan-19
May-19
Sep-19
Jan-20
May-20
NAFEX
Official
Federal Ministry of
Finance, Budget and
National Planning
Source: Central Bank of Nigeria
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