This means that the currency lost about five per cent cent of its value within 24 hours from the N664.04/dollar recorded at the close of business on Wednesday.
He said, “What has happened is in line with what we had anticipated that there will be some measure of unification.
Ajayi-Kadir said, “It is going to make our import more expensive, and the cost will also be transferred to the final consumer. So, there are pros and cons, but on the balance, we see it as a positive development” A Partner and Chief Economist at KPMG Nigeria, Yemi Kale, in a report, said the federal government’s decision to remove petrol subsidy and unify the country’s exchange rate would result in a spike in the rate of inflation for June and July 2023, as an immediate consequence of both policies.
“Other unintended consequences include worsening debt burden, debt to GDP and debt service ratios may worsen compared to immediate post-PMS subsidy levels unless measures are urgently taken to boost revenue and further manage government expenditure.” He recommended that to sustain the positive momentum and atmosphere of cautious optimism currently being witnessed, it is important that clarity, especially relating to the remaining FX and monetary policy supporting structures, are established.
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