curator
Administrator
Financial analysts at Dunn Loren Merrifield (DLM) has said that the demand pressure in the foreign exchange market will occasion depreciation of the naira.
Speaking at a roundtable to review the performance of the economy in the first quarter of the year, they noted that efforts of the Central Bank of Nigeria to firm up the naira has caused the external reserves to decline by 22.2 percent from $48.6 billion at the end of the first quarter of 2013 to $37.8 billion at the end of the first quarter of 2014.
Mr. Tola Odukoya, Managing Director, Dunn Loren Merrifield Asset Management and Research Company, who led other DLM research analysts – Moses Ojo, Jide Nwaogwugwu, and Abdul Garba, at the roundtable, said that even the Acting CBN Governor, Dr Sarah Alade, alluded to this in the minutes of the last MPC meeting. He said Alade noted that continuing efforts to defend the naira is not sustainable, asking that the currency be allowed to find its level. It was however agreed at the roundtable that depreciation may not be politically expedient before the 2015 general elections.
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Source: Vanguard Newspaper
Speaking at a roundtable to review the performance of the economy in the first quarter of the year, they noted that efforts of the Central Bank of Nigeria to firm up the naira has caused the external reserves to decline by 22.2 percent from $48.6 billion at the end of the first quarter of 2013 to $37.8 billion at the end of the first quarter of 2014.
Mr. Tola Odukoya, Managing Director, Dunn Loren Merrifield Asset Management and Research Company, who led other DLM research analysts – Moses Ojo, Jide Nwaogwugwu, and Abdul Garba, at the roundtable, said that even the Acting CBN Governor, Dr Sarah Alade, alluded to this in the minutes of the last MPC meeting. He said Alade noted that continuing efforts to defend the naira is not sustainable, asking that the currency be allowed to find its level. It was however agreed at the roundtable that depreciation may not be politically expedient before the 2015 general elections.
Click here to read more
Source: Vanguard Newspaper
