July 18 (Lagos) - The Naira depreciated in all the segments of the foreign exchange market last week due to shortage of dollars. Meanwhile the inter-bank foreign exchange market will experience the maturity of US$ 697 million one-month forwards contract sold by the CBN on Monday, June 27th 2016.
Last week the Naira depreciated in the inter-bank spot market by 7%. The depreciation, which was in sharp contrast to the stability of the previous week, was attributed to shortage of supply into the market.
Nigeria's central bank governor travelled to Britain and the United States last week to try to lure back investors scared off by the plunge in oil prices and resulting financial turmoil, a central bank official said on Friday.
Most likely he will come back with the message that he needs to devalue (sorry DEPRECIATE) the Naira further because all the talk about diversification of the economy is only talk so far and there no action on the ground.
Naira fell to 365 to 1 USD in the parallel market today. The result that was expected of implementing the flexible foreign exchange policy is yet to be seen. The Policy failed to check the parallel market rate and if anything made it worse.
The policies of the Central Bank are so confusing that it is difficult for foreign investors to invest in Nigeria. Let us hope and pray the Governors trip to the UK & USA leads us to the desired results and investors return.
reporting for easykobo.com on Monday, July 18 2016 from Lagos, Nigeria
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