Nigeria could be the next to devalue their currency Analysts at Societe Generale have earmarked the Nigerian Naira as the next Emerging Market currency to face devaluation.
In the last week, China, Vietnam and Kazakhstan have devalued their currency after coming under pressure from a falling oil price and the prospect of a US rate hike.
Nigerian’s currency has remained remarkably static during this period, however authorities may have to act due to their high dependence on oil. Currency devaluation has been the source of market volatility over the last week and if Nigeria were to follow suit, the turmoil in global markets may not be over just yet.
China was the first to embark on a path and devaluation, a move that heavily hit exporters to the world’s second largest economy.
Nigeria may not have the impact on global markets that China did, but a similar course of action will undoubtedly add to market concerns.