Jan 22 (Lagos) - As the CBN holds its Monetary Policy Meeting next week, the Standards & Poors rating agency has reiterated their call for a devaluation of the Naira to 265 against 1 Dollar.
“Their line has been to try to hold it as much as possible, and they are trying to continue that policy…alongside the restrictions on imports as well,” said Ravi Bhatia, Director of Sovereign and International Public Finance at Standard & Poor’s.
“But at some point they are going to have to move, but I think they are going to try and do it incrementally and not (in) big jumps,” Bhatia told reporters in a briefing, adding he expected this to happen in one or two increments.
It will help a little, but the problems aren’t going to go away – there is no easy avenue for them really,” he said.
He saw government talk of shifting to non-oil revenue as “overstated” and not easy to do.
“(Nigeria) is going to face a very tough year in 2016.”
At Easykobo we feel the government will de-value post February to make it one devaluation per year since the Naira was last de-valued in February 2015.
Prior to that the Naira was devalued in October 2014, October 2011 and in 2009. What we are seeing is a trend of devaluations over the past 5 years. The devaluations have affected Nigeria's growth as any growth is fueled by a weaker currency and in reality is no growth at all during the last 5 years.
The sooner the government decides to value it will be better for businesses in the Country but then again you never know. The loot of the treasury has been so massive that Naira has no footing left.
reporting for easykobo.com on Friday, January 22 2016 from Lagos, Nigeria
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