“Will the interbank rate be fixed again albeit at a higher price or will it be freely liberalized or within some sort of band? What happens to the backlog of FX demand, particularly those that affect banks’ asset quality e.g. petroleum marketers’ c.$2bn – will these immediately move to the interbank market, which could hurt banks’ NPLs?”
“As mentioned previously, GTBank’s expectation of a short term CAR boost if the Naira weakens cannot be seen as broad expectation for other banks, as Zenith for example thinks CAR could decline by about 2ppts if the exchange rate moves to NGN300/$1.,” said analysts at Rencap.
“You are bringing confidence in the market. You can actually plan your needs,” said Ini Ebong, Group Treasurer First Bank Holdings Plc, during an interview session at CNBC Africa.“The country’s money is coming back and foreign direct investment will also come back. We need to reopen the market,” said Ebong.