Donald Trump’s victory as the 47th U.S. President could worsen inflation in Nigeria and reduce global oil prices, impacting Nigeria’s oil revenue, according to a note from FXTM, authored by Senior Market Analyst Lukman Otunuga. Otunuga noted that Trump’s focus on boosting domestic oil production could increase supply, pushing oil prices down. Coupled with a stronger dollar, this would likely hurt major oil exporters like Nigeria.
The report highlighted market reactions to Trump’s win, with the dollar surging by 1.5% against the yen and Bitcoin reaching a record high of $75,330.88. The S&P 500 index futures also indicated strong gains, driven by expectations of tax cuts and deregulation under Trump.
Otunuga suggested that Trump’s return could lead to heightened market volatility and potential global trade conflicts, possibly driving inflation and pushing up U.S. interest rates. A stronger dollar could negatively affect gold prices and emerging market currencies. Additionally, Trump’s foreign policy, including plans to end the Ukraine war, might influence global risk dynamics.