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LequteMan
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According to London-based money manager Phillip Blackwood, at EM Quest Capital LLP, the austerity measures introduced by the Central Bank of Nigeria won't be enough to stabilize the Naira, BusinessDay reports:
“The pressure on the naira will continue, the best thing to do would be to depreciate more than they have done. You have to start looking at levels of 190 or 200 in the interbank market before it makes sense,” he said.
With oil prices continuing to fall – OPEC daily basket stood at $74.28 per barrel on Thursday – a continued defence of the naira with the foreign exchange reserves will be disastrous for the economy, as the pressure on the currency continues.
“The fall in the oil price forced the hand of the central bank, but it is political and policy issues that will continue to negatively affect confidence in the naira. A further devaluation after the 2015 elections seems likely,” according to Philip Walker, economist at Economist Intelligence Unit London.
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#Nigeria #Naira
“The pressure on the naira will continue, the best thing to do would be to depreciate more than they have done. You have to start looking at levels of 190 or 200 in the interbank market before it makes sense,” he said.
With oil prices continuing to fall – OPEC daily basket stood at $74.28 per barrel on Thursday – a continued defence of the naira with the foreign exchange reserves will be disastrous for the economy, as the pressure on the currency continues.
“The fall in the oil price forced the hand of the central bank, but it is political and policy issues that will continue to negatively affect confidence in the naira. A further devaluation after the 2015 elections seems likely,” according to Philip Walker, economist at Economist Intelligence Unit London.
click here to read more
#Nigeria #Naira
