Published On: Thu, Dec 31st, 2015

No suggestion CBN will devalue Naira

Naira

Naira

LAGOS, (CAJ News) – A Nigeria based financial markets think-tank has projected the Central Bank of Nigeria to remain firm against devaluation in the coming year.

The sentiment by First Bank of Nigeria’s (FBN’s) capital markets entityfollows insistence by the CBN governor, Godwin Emefiele, during a recent annual dinner of the Chartered Institute of Bankers of Nigeria in Lagos that it had achieved stability in the exchange rate since February.

He conceded some stakeholders were against the policies.This group of the discontented includes the offshore portfolio communityand manufacturers running low on imported inputs.

“That said, we do not expect a change of tack from the authorities and werepeat our view that devaluation would be a last resort,”

FBN said in its last marets update for the year.The financial house said the pressure in the market has eased a little for the moment with the end of the pre-Christmas import surge and theencashment of foreign currency by the returning Diaspora on holiday.Since November all sales of foreign currency by bureaux de change haverequired a biometric verification number (BVN).

“This has constrained foreign currency demand, and they all now have toplace a cautionary N35 million deposit with the CBN,” FBN highlighted.At current rate, the Naira is trading at US$ 0,005.

CAJ News

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