By CHIJIOKE OHUOCHA
The Central Bank of Nigeria has directed a slight increase in the exchange of the naira to the dollar 380 to 1 dollar. The going rate for about two years has been stable at N360 to $1 but with the attack from the coronavirus which ahs effected most world economies it maybe a sign of naira devaluation on its way by the Central Bank
Traders said no quotes were shown on Friday for the naira on the official market, which has been supported by the central bank for more than two years.
The move comes after the impact of an oil price plunge spread across asset classes in Nigeria, causing investors to widen spreads on the bond market, sell stocks and weaken the country’s dollar reserves.
Last week JP Morgan said it expected Nigeria to devalue its currency by around 10% to 400 naira per dollar by the end of June after a sharp oil price tumble ramped up the pressure on Africa’s biggest economy.
On the over-the-counter spot market for investors few trades were done on Friday on the naira at 380 on thin liquidity, traders said. Nigeria operates a multiple exchange rate regime which it has used to manage pressure on the currency.
The central bank was not available for comment. (Reuters)
About the Author
945283 289671I dugg some of you post as I thought they were really beneficial invaluable 355323
378254 975335baby strollers with high traction rollers need to be much safer to use compared to those with plastic wheels- 454652