Nigeria's President Bola Tinubu waves to a crowd as he takes the traditional ride on top of a ceremonial vehicle, after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo
"The reaction is one of, 'finally'," said Tunde Ajileye, a partner at Lagos-based SBM Intelligence. "If this stays, then it would mean that had been able to remove the two subsidies that have crippled Nigeria fiscally and monetarily for the last decade." The tangle of multiple exchange rates for everything from international school fees to food imports created foreign currency shortages and hobbled investment due to issues getting money out."Just the fact that you have seen quite a bit of movement in a relatively short space of time has gotten a lot of people in the market excited," said Goldman Sachs economist Andrew Matheny.
Joe Delvaux, a portfolio manager at Europe's largest asset manager Amundi, said it could take months or more to lure longer-term cash.