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Investors, Diaspora Confidence On Nigeria s Bureaucratic Monetary Policy Drop As Foreign Reserves Drop

Investors, Diaspora Confidence On Nigeria s Bureaucratic Monetary Policy Drop As Foreign Reserves Drop
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Diaspora Confidence on CBN s Bureaucratic Monetary Policy Drop as Foreign Reserves Dips Worsens Amidst Dollar Inflow Shrinks

Nigeria’s foreign reserves record the biggest drop in May 2021 to $34.2 billion. Investment banking analysts said Naira remains overvalued despite the unification of the Central Bank’s (CBN) official and autonomous foreign exchange (NAFEX) rates. The Nigerian local currency has been struggling to retain value amidst scarce foreign currency inflows into the domestic economy. In a new report, investment banking experts at Chapel Hill Denham Limited said they see room for rates adjustment though not certain about timing. The investment stated that despite the improved liquidity at the Investors and Exporters window, naira for dollar rate closed flat across the varying segments last week. Specifically, analysts said rates at the Investors and Exporters window and the central bank’s secondary market intervention sales window closed flat at N412 and N380.7 respectively, noted also spike in arbitrage activities in the FX market.

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