If a report by Bloomberg is to be believed, CBN governor Godwin Emiefiele and his deputy on economic policy, Dr Sarah Alade have been touring the U.S and U.K this week to seek for bond investors.
Unfortunately, both officials were said to have been disappointed as several investors in London told them there wasn’t enough liquidity in Nigeria’s foreign-exchange market for them to be comfortable buying naira bonds.
Emiefiele was said to have denied their claims that the CBN continued to control the currency’s exchange rate even after its 30 per cent devaluation against the dollar on June 20, they said.
Nigeria’s relies on oil for 90 percent of export earnings has affected the economy following the crash in crude oil prices in mid-2014.
The CBN imposed capital controls and a currency peg of 197-199 naira per dollar from March 2015 which chased away foreign investors.
The naira since has fallen to around 282 since the 16-month peg ended, prompting few investors to return local markets, even as the black market rate is still around 20 percent weaker at 360.
The Investors were said to have also expressed their concerns to Emiefiele that the CBN had lower reserves than its stated figure of $26.4 billion because it may have sold some of the currency on the forwards market.
0 comments:
Post a Comment