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LequteMan
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According to several financial experts, Nigeria’s Naira is headed for several further falls in the next 12 months if things remain as they are.
Dwindling oil revenues and capital outflow has depleted Nigeria's central bank reserves perilously close to below $30bn, Financial Times reports.
The Central Bank of Nigeria's $50bn warchest has in less than 2 years been deflated by locals hoarding dollars as the Nigerian naira has slumped, and eroding oil revenues as crude prices have tumbled.
Alan Cameron of Exotix, a brokerage, estimates that the true reserve figure is closer to $28.1bn, which is equal to just over four months' worth of imports and "fast approaching a critical level".
Analysts and investors therefore widely believe that the Nigerian naira is going to be devalued further this year.
Non-deliverable forwards indicate the currency is expected to fall to N263 per dollar over the next 12 months – another 32 per cent decline.
#Nigeria #FinancialTimes #Dollar
Dwindling oil revenues and capital outflow has depleted Nigeria's central bank reserves perilously close to below $30bn, Financial Times reports.
The Central Bank of Nigeria's $50bn warchest has in less than 2 years been deflated by locals hoarding dollars as the Nigerian naira has slumped, and eroding oil revenues as crude prices have tumbled.
Alan Cameron of Exotix, a brokerage, estimates that the true reserve figure is closer to $28.1bn, which is equal to just over four months' worth of imports and "fast approaching a critical level".
Analysts and investors therefore widely believe that the Nigerian naira is going to be devalued further this year.
Non-deliverable forwards indicate the currency is expected to fall to N263 per dollar over the next 12 months – another 32 per cent decline.
#Nigeria #FinancialTimes #Dollar
