Nigerian Naira has found some rare footing, holding steady around 1 380 to the United States Dollar as of July 1st. While the break from volatility is a massive relief for local businesses, economic experts are split on whether the calm will last.

For investors, a predictable exchange rate means they can finally plan ahead. Dr Adeniyi Ifetayo, Chief Executive Officer (CEO) of Megastar Media Communications, notes that this consistency is exactly what is needed to rebuild market confidence, especially for businesses relying on loans who can’t afford sudden, overnight currency spikes.

However, Shuaibu Idris Mni, CEO at Time-Line Consult, warns it is too early to celebrate. While a stable Naira should theoretically help cool down inflation and lower interest rates, Idris points out that much of the recent foreign cash flowing into the country is “hot money”, short-term capital that could vanish just as quickly as it arrived.

–ChannelAfrica–