As Oil Prices Plunge, Nigeria Exclaims It Is Not Zimbabwe | Zero Hedge.
Having already raised rates and devalued the Naira (and widened its trading bands), theNigerian currency continues to collapse to new record lows as crude crashes lower and lower. Having tumbled 11.5% since oil prices peaked, the Naira is holdinga round 184/USD – over 9% above the new peg and dramatically outside of the new trading bands of +/-5% as it seems capital flight is out of control. That is probably why, as Bloomberg reports, Finance Minister Ngozi Okonjo-Iweala has commented that Nigeria won’t resort to printing money or imprudent borrowing as it adjusts to lower prices of oil. “This is not the first time this country has gone through lower oil prices and it will not be the last,” she said – making it very clear that Nigeria is not Zimbabwe (yet).
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