Nigeria is currently facing elevated risks to its economy
from the twin prospects of a rate hike in the United States (U.S) and
further slowdown in Chinese economic output.
A U.S Federal Reserve (Fed) rate rise is likely to
exacerbate global financial market volatility and add to currency
pressures in Sub Sahara Africa, according to Bismarck Rewane, CEO of
consulting firm Financial Derivatives Company (FDC).
“An interest rate hike in developed economies will trigger
capital flow reversals from emerging economies such as Nigeria,” Rewane
said in a presentation he made at the Lagos Business School.
