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LequteMan
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The Naira's future appears bleak following JP Morgan's surprise announcement that it would delete the country's government bond index at the end of the month.
Read More: JP Morgan to Remove Nigeria From Government Bond Index
"The 1-year non-deliverable forwards (NDF) on Naira rose 2.79 percent to 268.50 on Wednesday, a day after a surprise move by JP Morgan," a Reuters report says.
"Currency forwards, a derivative product used to hedge against future exchange rate moves, reflect expectations of a weaker naira: One-year NDFs price the naira at 268.5 per dollar, while it traded at 261.01 shortly after the index announcement," it added.
The Naira currently trades around N230/$ at the parallel market while the central bank pegs the exchange rate at N197/$.
Read More: JP Morgan to Remove Nigeria From Government Bond Index
"The 1-year non-deliverable forwards (NDF) on Naira rose 2.79 percent to 268.50 on Wednesday, a day after a surprise move by JP Morgan," a Reuters report says.
"Currency forwards, a derivative product used to hedge against future exchange rate moves, reflect expectations of a weaker naira: One-year NDFs price the naira at 268.5 per dollar, while it traded at 261.01 shortly after the index announcement," it added.
The Naira currently trades around N230/$ at the parallel market while the central bank pegs the exchange rate at N197/$.