In a bid to forestall JPMorgan’s warning that it shall remove Nigeria from its Government Bond Index (GBI-EM) by the end of the year, the Central Bank of Nigeria (CBN) will today meet with chief executives and treasurers of commercial banks.
Bank sources yesterday disclosed that the meeting would discuss issues surrounding the central bank’s foreign exchange policy, reported Reuters.
The meeting is also expected to discuss measures to improve liquidity in the foreign exchange market.
The CBN Governor, Mr. Godwin Emefiele, had assured jittery investors that the central bank was “doing everything possible” to ensure that the country remained on the JP Morgan Index in order to avoid the adverse consequences which the country’s exclusion could cause.
The central bank imposed tight controls on the foreign exchange market in February in a bid to curb the weakening of the naira in Africa’s biggest economy.
The CBN recently adjusted its exchange rate peg to N196.90 to a dollar at the interbank market, the rate it closed with yesterday, from N196.95/$1. The naira has been stable at the interbank market.
The central bank had previously made a tiny adjustment to the exchange rate peg, with analysts saying the move indicated that the CBN was beginning to think about how to loosen its currency regime.
A dealer said the central bank was trying to gauge the level at which it could defend the naira, but noted that the bank was running low on ammunition to do this.
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