from Zero Hedge
Less than a month ago, when looking at Nigeria’s deplorable economic and reserve situation, made far worse by the collapse in Nigerian oil exports courtesy of the Niger Delta Avengers, we predicted that “Nigeria Currency Devaluation Looms As FX Forwards Crash To Record Lows.” Specifically we warned that “having urged investors “not to panic” last year, and seeing dollar reserves drying up rapidly earlier this year, recent “lies” about the nation’s statistics have raised fears of a looming devaluation as FX forwards have crashed to 291 Naira to the dollar (current peg is 199).”
Specifically, the chart we were looking at was the one showing the dramatic divergence between the Naira spot rate and the 3M forwards which had blown out to record wides: