CBN to Make Tough Policy Decision About Nigeria’s ForEx Market Tomorrow

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The Central Bank of Nigeria has called a meeting with chief executives and treasurers of commercial lenders on Friday to discuss issues surrounding its policy on the foreign exchange market, Reuters reports.

CBN had imposed tight controls on the foreign exchange market in February to curb speculation on the naira and save its dwindling foreign reserves.

Traders were upbeat on the outcome of the meeting which they claimed was long overdue to ease the tight control in the market and allow the local currency to find its real value.

“We are anticipating that the meeting would naturally discuss the present market conditions and explore possibility of reviewing the tight control on the forex market,” one senior treasurer told Reuters.

JPMorgan had threatened to eject Nigeria from its Government Bond Index (GBI-EM) by the year-end unless it restores liquidity to currency markets in a way that allows foreign investors tracking the benchmark to transact with minimal hurdles.

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