Tag
FX
The naira fell against the U.S. dollar at the official but gained marginally at the parallel market after the local currency recorded a gain against the dollar in the official market the previous day.
In our view a major factor contributing to the existence of the wide premium between the official and parallel market rate is the distortion in the market that has resulted in more demand going to the parallel market.
As the CBN's newly appointed governor assumed office, the primary task before the leadership of the apex bank will be to fix the foreign exchange rate as well as stabilize the naira against dollars.
Analysts predict that eliminating fuel subsidies and implementing a new FX framework will encourage foreign investments in the country.
The recent directives issued by the Central Bank of Nigeria (CBN) has provide further guidance to Deposit Money Banks (DMBs) on operational changes in the foreign exchange market.
Simon Kitchen, Head of Strategy, and Research at EFGs explained why foreign investors avoid Nigeria's equities despite a 10% EM allocation.
In terms of the policy response, Nigeria has perhaps been more tested than many other economies
The decline in the number of foreign inflows has caused a huge FX supply shortage in the economy, piling more pressure on the exchange rate...
Nigeria is experiencing one of its worst FX crises in history due to increasing demand for FX amidst low supply.
The IMF has stated that improving trade balance is having a limited impact on Foreign Exchange (FX) strains...
The fallout of the conflict between Russia and Ukraine continued to weigh on the international oil market this week...
The exchange rate between the naira and the US dollar closed at N417/$1 at the official Investors and Exporters (I&E) window.