Naira Devaluation: Expert Predicts Rise In Debt Profile, Inflation
An expert of capital market, Prof . Uche Uwalaka who is a staff of Nasarawa State University, has said that the recent devaluation of the naira will lead to a rise in the debt profile of the country and banks in naira terms.
The Don said a negative side effect of the devaluation was that it would shrink asset values in dollar terms and this will affect the global ranking of banking and capital market institutions.
In the short term , he said , the implication of the devaluation was that it would likely hurt the economy and bring some pains to most Nigerians given the country’ s dependence on imports and over reliance on oil revenue .
He further said that banks that have borrowed in dollars from foreign institutions will be in more trouble.
The Central Bank of Nigeria recently adjusted the official exchange rate of the naira to the dollar on its website from N361 to N 379 .