Nigeria has record-high interest rates and a currency at record lows

The Central Bank of Nigeria just came out of its
monthly monetary policy meeting and
announced it would keep its benchmark interest
rate at a record-high 13% ( http://
pre-vote-meeting.html ) . (Some economists
expected it to go even higher.)
The Nigerian naira also hit a record—but not a
record high.
The currency hasn’t tracked oil as closely as
Russia’s ruble, but the Central Bank of Nigeria
decided to devalue it in November ( http:// )
after its foreign reserves dried up trying to
protect the naira’s value.

With crude oil prices dropping sharply, the
International Monetary Fund recently dropped its
2015 economic growth projections ( ) for Nigeria to 4.8% from
7.3%. The commodities rout—along with Boko
Haram’s terrorism ( than-anyone-realized/ ) , which is roiling large
portions of the country’s northeast region—will
be a big factor in the country’s upcoming
elections ( ) , which pits incumbent
president Goodluck Jonathan against challenger Muhammadu Buhari.


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