Investor Presentaiton
FOREIGN EXCHANGE DISTORTIONS WERE SEVERE
As CBN rationed supply and attempted to control demand in the FX market
The premium between the parallel and official rate almost
doubled in the year through May 2023
...and Nigeria's FX premium was among the highest in
the world
Naira/US$
900
800
700
600
500
FX premium
= 37%
400
300
Jan-22
Feb-22
Mar-22
Apr-22
May-22
Jun-22
NIGERIA
THE WORLD BANK
IBRD ⚫IDA |
WORLD BANK GROUP
Jul-22
Aug-22
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Percent
150
Parallel rate
125
FX premium
= 63%
IE rate
100
75
I
I
Parallel rate premium
50
50
25
0
Syria
Iran
Argentina
Ethiopia
Zimbabwe
Burundi
Nigeria
Algeria
Malawi
Myanmar
Congo, DR.
Angola
Bangladesh
Lao PDR
Libya ■
Ghana
Mozambique■
Ukraine■
Sri Lanka■
Sudan ■
Venezuela
Feb-23
Mar-23
Apr-23
May-23
Note: Latest data as of the end of Q1 2023 (May 2023 for Nigeria). Excludes
Lebanon and Yemen.
Source: FMDQ, World Bank, Aboki rates
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