The Central Bank of Nigeria has again tweaked its exchange rate again. The CBN adjusted its exchange rate peg on Thursday to 196.90 naira against the dollar from the 196.95 set last week.
According to Reuters, the central bank had sold dollars to the interbank market at the new rate the previous day, dismissing the move as a currency appreciation as it wasn’t market driven, but noted it could signal the coming of a new policy.
This is the second time in less than two weeks that the CBN is adjusting the exchange rate leading analyst to interpret it as part of a test phase for allowing the naira to float.
This is happening at a period where JP Morgan had threatened to yank Nigeria off its index amidst liquidity and transparency concerns.
Nigeria’s foreign reserves fell to $29.18 billion by June 9, down 1.65 percent from last month, as the central bank burned cash to defend the local currency.
