The unification of the segments of the foreign exchange market has been fingered as a factor in the net trade surplus reported in the third quarter.
Analysts at Cowry Asset Management Limited in a report disclosed, “The emergence of a net trade surplus in Q3’23 is a noteworthy deviation from previous quarters, underscoring Nigeria’s trade resilience amid global economic shifts. This positive development is intricately linked to the impact of recent currency devaluation, strategically employed to enhance the competitiveness of the country’s exports.
“The weakened domestic currency, in tandem with robust global oil prices, has positioned Nigeria favourably, potentially stimulating export volumes as a response to escalating import costs. In essence, the Q3’23 trade landscape reflects a convergence of factors, including resilient crude oil exports, improved global oil prices, increased production, and strategic economic measures, collectively…