The Central Bank of Nigeria on Tuesday lowered the naira peg to 196.95 against the dollar from 196.90 it set last week.
This made it the fourth time the CBN had adjusted the peg since it was introduced in February, Reuters reported.
This happened just as the naira tumbled further to 228 against the dollar at the parallel market on Tuesday from 265 on Monday.
Reuters reported that the yield on the Federal Government’s 2024 bond in the JP Morgan Government Bond Index rose by 40 basis point to 14.74 per cent.
Traders said the move might indicate that the bank was beginning to think about how to loosen its currency regime.
“There is no change to FX policy, therefore the locals are getting a bit nervous thinking that offshore investors will not be coming back any time soon,” Portfolio Manager at Aberdeen Asset Management, Mr. Kevin Daly, said.
“Effectively, the bond market is starting to price in a much wider move on the currency,” he said.
PUNCH
No comments:
Post a Comment