Business Nigerian Naira Weakens Before MPC Rate Decision

[ProfRem]

Nigerian naira down 0.1% to 199.15 vs USD as of 11.50am in Lagos, Nigerian commercial capital, according to a news report obtained from the Bloomberg terminal.

• Nigerian central bank to announce interest rate decision Tuesday
  
  
• NOTE: Nigeria’s Central Bank Seen Loosening Stranglehold on Currency
  
  
• Central bank will probably increase rate by 50-250 basis points, according to 18 of 20 economists surveyed by Bloomberg

• Naira spot price pegged at 197-199 since March 2015; traded at 340 vs USD on black market Monday, Usman Onoja, CEO of Lagos- based Lovonus Bureau de Change said.
  
  
• 3-month non-deliverable forwards gain 0.2% to 247.50 vs USD
  
  
• Yld on USD bond due July 2023 +5bps 7.48%
  
  
• FX reserves at $26.6b on May 19, -8% vs end-2015

Source: Bloomberg