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UPDATE 1-Nigeria's economy set to grow 2% in 2021 - central bank governor

Published 27/11/2020, 20:56

(Adds comments on inflation, the naira)
LAGOS, Nov 27 (Reuters) - Nigeria's economy is set to grow
by roughly 2% in 2021, its central bank governor said on Friday.
Africa's largest economy slipped into recession in the third
quarter, hit by the COVID-19 pandemic and low oil prices, but
central bank governor Godwin Emefiele said he expected it to be
short-lived. Emefiele said he also expected double-digit inflation to
"moderate" by the first half of 2021, and stood behind the
bank's foreign exchange policy, which he said was allowing a
gradual liberalisation of the naira and was "in line with best
practices in other countries".
He also said there was "no need to worry" about Nigeria's
foreign reserves.
The naira has weakened by 28% this year, but analysts said
Emefiele's dismissal of the black-market rate raised doubts
about Nigeria's commitment to reforms and dented hopes for a
shift towards a market-driven exchange rate.
On Friday, the naira hit a record low of 600 to the dollar
on the futures market for five-year settlement, underlining the
severity of a lack of liquidity on the spot market.

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