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Nigeria's Currency Set for Biggest Weekly Drop in Eight Months

(Bloomberg)

Nigeria’s currency is poised for the biggest weekly drop in eight months, signaling the central bank’s tolerance for more flexibility in the exchange rate. 

The naira traded at 418.55 to the greenback as of 11:48 a.m. on Friday in Lagos, the commercial hub. ....

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Naira bonds lose almost 10% in dollar terms in Q1 as dwindling liquidity


Obodo Ejiroghene Lucky
[Chief Economist]
Mr. Ejiroghene Obodo is an economist with over 15 years in Journalism, which cuts across Research and Data analysis.
Mr Obodo, a graduate of Columbia University, New York City, with a
Degree Journalism Graduate School
Field Of Study Citi Journalism Seminar
Ejiro was the Online Editor at BusinessDay Media, where he oversees the online editorial department. Proir to this Mr. Ejiroghene Obodo, also known as Lucky, served as a Senior Research Analyst at BusinessDay Research and Intelligence Unit. Prior to this, he was an Analyst at the firm.
Ejiro has won series of International awards which includes the most coveted awards ....

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EM's Worst Bond Rout Far From Over as Nigeria Fights Inflation

(Bloomberg) The emerging world’s worst bond rout isn’t over yet as elevated inflation and dwindling liquidity concerns keep investors wary of Nigeria’s local-currency debt.Naira bonds have lost almost 10% in dollar terms this quarter, extending their year-to-date decline to more than 28%, the worst in the Bloomberg Barclays Global Emerging Markets local currency index. That’s almost double the loss for Turkey, the second-worst performer.Although consumer-price increases slowed in April for the first time in 20 months, the inflation rate in Africa’s biggest economy remains above 18%. Even with benchmark 10-year naira yields rising above 13% as the budget deficit widened during the pandemic, that’s still handing investors a negative real return.“There could be further upside for yields,” said Samir Gadio, head of Africa strategy at Standard Chartered Bank. “Pension funds and local investors will probably seek to push yields ....

Samir Gadio ,

Explainer: Why Nigeria's central bank won't ease its grip on the naira


5 Min Read
ABUJA (Reuters) - Nigeria is keeping control of its naira currency despite demands for deeper reforms from the International Monetary Fund and World Bank and complaints from businesses.
Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. REUTERS/Afolabi Sotunde/Illustration/File Photo
The multilateral institutions say a free-floating naira would help the economy withstand future shocks. But Nigerian authorities fear inflation stemming from a sharp devaluation could throw millions into poverty.
Last week, central bank governor Godwin Emefiele denied the country was adopting a new foreign exchange management policy, while vice president Yemi Osinbajo said the government would itself use a more flexible rate. ....

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