The Naira came under more pressure in the parallel market, trading at 467 against the dollar, after the Central Bank of Nigeria (CBN) cut interest rates by 100 bps to 11.5%, in a surprise move aimed at stimulating the recovery after the drop in oil prices at the start of the year and the effects of the coronavirus.
A memo shared with the
banks signaling the growing scarcity of dollars in the market, suggests the possibility of further restrictions to limit currency purchases, as sales by Bureau de Change are clearly insufficient to meet demand.
“With such restrictions on the horizon, we expect the Naira to be lower and some stability in the near term,” says the weekly analysis from AZA, the leading non-bank pan-African currency supply platform.
