Nigeria's overnight lending rates
soared to a record high of 100 percent on Tuesday, signalling a
sharp tightening of naira supply as the currency fell to 200 to
the dollar for the first time.
A weekend decision to postpone presidential elections by six weeks, combined with plummeting oil prices, has damaged investor sentiment towards Nigeria, driving the naira to a succession of lows despite central bank efforts to prop it up.
The central bank said on Tuesday the foreign exchange market was understandably nervous after the decision to postpone elections but said it was nothing to worry about. The bank is committed to sustaining a "stable and orderly" market, it added.
The naira fell sharply to a fresh low of 200 to the dollar, shrugging off central bank intervention and ending at a record closing low of 199.90. It closed at 196.50 on Monday.
"The direction of travel has been pretty clear for the past few months and probably will continue to be. And that will call for a stronger response from the authorities," said Stuart Culverhouse, Global Head of Research at brokerage Exotix.
Read more at Click here / www.trade4x.net
A weekend decision to postpone presidential elections by six weeks, combined with plummeting oil prices, has damaged investor sentiment towards Nigeria, driving the naira to a succession of lows despite central bank efforts to prop it up.
The central bank said on Tuesday the foreign exchange market was understandably nervous after the decision to postpone elections but said it was nothing to worry about. The bank is committed to sustaining a "stable and orderly" market, it added.
The naira fell sharply to a fresh low of 200 to the dollar, shrugging off central bank intervention and ending at a record closing low of 199.90. It closed at 196.50 on Monday.
"The direction of travel has been pretty clear for the past few months and probably will continue to be. And that will call for a stronger response from the authorities," said Stuart Culverhouse, Global Head of Research at brokerage Exotix.
Read more at Click here / www.trade4x.net
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