The apex bank of Nigeria, Central Bank will have to devalue the naira at some stage, possibly by more than 15 per cent, global ratings agency, Standard & Poor’s, has said.
According to PUNCH, The agency, however, said on Wednesday that it saw the adjustments as likely to be gradual.
Local and foreign investors have seen a devaluation of the naira as long overdue for Nigeria, which has been battered by the recent tumble in crude oil prices.
Following the naira devaluations in November and February, the CBN has recently focused on curbing access to foreign exchange at the interbank market for importers of some goods, introducing stringent restrictions three weeks ago.
But the Director, Sovereign Ratings, Standard & Poor’s, Ravi Bhatia, said the recent measures by the CBN including stopping the sale of forex to importers of 41 items at the official forex markets could only delay the inevitable, Reuters reported.
“Another devaluation is inevitable… they will have no option but to devalue,” said Bhatia at a media briefing.
Many investors are positioning for a devaluation of around 15 per cent. Bhatia said that sounded “reasonable”, though even more might be needed.
(PUNCH)
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