Posted 3/31/2024, 12:09:42 AM
Naira Gains Unlikely to Bring Instant Relief for Food Prices
- Food prices won't drop immediately despite naira appreciation due to time lag from when goods were purchased at higher exchange rates
- Sellers avoiding losses by continuing to sell at the rate they originally bought goods
- Market expectations driving delay as sellers watch if naira stability is sustained
- Production reductions lagging due to rigidity and market expectations about future prices
- Infrastructure issues like lack of power driving seller costs and impacting consumer prices
