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LequteMan
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The Nigerian Naira is set to appreciate considerably against the dollar following the central bank's announcement of a new foreign exchange policy on Wednesday.
CBN had launched a new interbank foreign exchange trading window to boost the supply of hard currency in Africa's biggest economy, its governor Godwin Emefiele said.
Following the announcement Nigeria's non-deliverable forwards (NDF), a term used by traders to predict the future value of the naira, fell.
Non-deliverable currency forwards expected the naira's exchange rate at 366 to the dollar in 12 months' time, compared to 331.78 at Tuesday's close. However, one-month dollar-naira NDFs fell by 3.55 percent to 300 to the dollar, Reuters say.
This means the naira is set to appreciate considerably against the dollar at the market where most Nigerians get the greenback, the black markets.
As at lunch on Wednesday, the naira was quoted at N370 against the dollar at the black market, but the local currency will soon appreciate, according to NDFs.
The official naira-dollar rate, which was pegged at N199/$ is expected to fall as well, but few people get the currency at this rate.
Black markets might eventually be eradicated as the dollar will become more available at the interbank market, analysts say. However, both markets will have a tough competition for customers.
CBN had launched a new interbank foreign exchange trading window to boost the supply of hard currency in Africa's biggest economy, its governor Godwin Emefiele said.
Following the announcement Nigeria's non-deliverable forwards (NDF), a term used by traders to predict the future value of the naira, fell.
Non-deliverable currency forwards expected the naira's exchange rate at 366 to the dollar in 12 months' time, compared to 331.78 at Tuesday's close. However, one-month dollar-naira NDFs fell by 3.55 percent to 300 to the dollar, Reuters say.
This means the naira is set to appreciate considerably against the dollar at the market where most Nigerians get the greenback, the black markets.
As at lunch on Wednesday, the naira was quoted at N370 against the dollar at the black market, but the local currency will soon appreciate, according to NDFs.
The official naira-dollar rate, which was pegged at N199/$ is expected to fall as well, but few people get the currency at this rate.
Black markets might eventually be eradicated as the dollar will become more available at the interbank market, analysts say. However, both markets will have a tough competition for customers.
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