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  • Naira may be devalued again – Report
  • Following the inauguration of the new administration, the naira may be devalued again to reflect the recent drop in Nigeria’s foreign reserves, analysts at Renaissance Capital have said.

    The analysts said this in a report, ‘Nigeria beyond May 29: Managing expectations,’ which was made available to Punch’s correspondent on Friday.
    The analysts, however, noted that the Central Bank of Nigeria was likely to move back toward a ‘managed float versus the managed peg’ of recent months.

    They said, “Post-inauguration, we think the naira – which has essentially been pegged at N199/$1 since the mid-February devaluation – will be devalued, to reflect the $4.5bn fall in FX reserves since the February devaluation.”


    Noting that a weaker naira implied a build-up of inflationary pressures, they observed, “We see inflation breaching the central bank’s inflation target band of six to nine per cent and entering double-digits in Q3 2015. This rules out any prospect of monetary easing in 2015, in our view.”

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