DAILY TRUST
An economic expert and CEO of Nairametrics, Ugodre Obi-Chukwu, says the return of the US President Donald Trump to power could strengthen the dollar and weaken Nigeria and other African currencies.
He said a stronger dollar could also increase debt servicing costs and heighten inflation.
Daily Trust reports that Trump, who was sworn in on Monday as the 47th US President, had signed dozens of executive orders, which may impact on the world political economy.
But Obi – Chukwu said Trump 2.0 could impact the economy of sub – Saharan Africa, especially on the currency, capital flows, immigration and inflation.
He stated this in an outlook titled “Nigeria’s Macroeconomic Outlook 2025: Nigeria in Transition: Reforms, Global Shifts and Strategic Opportunities.”
“Stronger dollar could weaken the African currencies, increase debt servicing costs, and heighten inflation.
“Capital Flows: Lower U.S rates might attract investment to SSA if yields remain high.
“Oil prices: increased US oil production may surpress prices, reducing revenue for oil producers.
“Immigration: travel restrictions may lower remittance, impact FX reverses and consumption.
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