Economic Slowdown – Quick Response But No Quick Fix (LBS Executive Breakfast Session – July 2020)

Must Read

List of First Bank of Nigeria Sort Codes in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...
- Advertisement -

Nigerian manufacturers are mostly anxious about two things today:

  1. How long will the pandemic lockdown continue before demand for my products recover? (X) – Unknown
  2. When will the exchange rate unification take place and what will the value of the naira be in the forex market after this? (Y) – Unknown

When the Unknown Unknowns (Y) are greater than the Known Unknowns (X), according to Donald Rumsfeld, the result is investor uncertainty and economic paralysis.

The good news is that fears of an exchange rate erosion of the Naira may be grossly exaggerated and investors ‘have nothing to fear but fear itself’ (Franklin Roosevelt). In this edition, our slides on the economics of the exchange rate adjustment explain why the naira will not crash as widely feared by investors.

Perplexed Nigerians

A perplexed man feels baffled, puzzled, confused and full of uncertainty. Conflicting news of an imminent recession (-2.5% in Q2) and the recent jump in PMI (up 24.5% to 53.9pts) has left Nigerians unsure of what next to expect.

The swift response of policymakers to the crisis is laudable but there is still a long road to economic recovery. In other words, there is no quick fix or silver bullet. Perplexed Nigerians have however since transitioned from denial to acceptance and now anxiously await the outcome of the different policy initiatives (Economic Sustainability Plan).

Read Also:  Is the Economy Spiraling? (LBS Executive Breakfast Session – February 2021)
- Advertisement -

Interestingly, the swift 18% increase in the pump price of petrol on July 1 st confirms the policy maker’s determination to respond adequately and speedily to a dynamic macroeconomic situation.

In this edition of the LBS Breakfast Session, Bismarck Rewane and the FDC Think Tank demystify the myths about the exchange rate movement and its impact on your business and portfolio strategy.

Download the Economic Slowdown – Quick Response But No Quick Fix (LBS Executive Breakfast Session – July 2020)

- Advertisement -
Economic Slowdown - Quick Response But No Quick Fix (LBS Executive Breakfast Session – July 2020) - Brand SpurEconomic Slowdown - Quick Response But No Quick Fix (LBS Executive Breakfast Session – July 2020) - Brand Spur
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Economic Slowdown - Quick Response But No Quick Fix (LBS Executive Breakfast Session – July 2020) - Brand SpurEconomic Slowdown - Quick Response But No Quick Fix (LBS Executive Breakfast Session – July 2020) - Brand Spur

Latest News

100 Years On – See Why Mercedes-Maybach Is The Pinnacle Of Luxury

“To present the best of the best”: that was the ambition voiced by Karl Maybach and his father Wilhelm...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Economic Slowdown - Quick Response But No Quick Fix (LBS Executive Breakfast Session – July 2020) - Brand SpurEconomic Slowdown - Quick Response But No Quick Fix (LBS Executive Breakfast Session – July 2020) - Brand Spur