Oct 24 (Lagos) - Nigeria’s central bank said on Monday it had injected US$195m into the interbank foreign exchange market, extending efforts to boost liquidity and alleviate dollar shortages. The bank released US$100m for the wholesale market, US$50m for small businesses and individuals, and US$45m for certain dollar expenses such as school fees and medical bills.
The CBN’s daily fx intervention was again US$0.5m, at N305.15. Additionally, the CBN offered US$100m at a wholesale intervention. Turnover on NAFEX declined from US$156m on Friday to US$146m.
Indicative rates ranged from N350 to N362. Investors have taken record short positions in the USTs market on the assumption that President Trump will appoint a more hawkish Fed chair to replace Janet Yellen in February. Most analysts in USA are expecting 3 interest rate hikes in 2018 in USA which will make USD stronger.
The USD strengthened against the JPY on the basis that the weekend’s election results in Japan means a continuation of the easy monetary policy of “Abenomics.
Naira has been stable for 6 months now but next year if crude oil prices tumble and USA hikes its interest rates 3 times, the Naira could face turbulence and possible devaluation again.
Naira Forward Rates
USD/NGN (CBN Official)
reporting for easykobo.com on Tuesday, Oct 24 2017 from Lagos, Nigeria
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