The Nigerian Central Bank's
announcement on Monday devaluing the Naira helped the Nigerian Currency to
stabilize, chidi opara reports learned. The Naira traded at #159.2 to $1 Dollar at
noon on Tuesday.
The Central Bank's announcement also
said that the 12 percent monetary policy rate would remain unchanged for
now. The rate was last raised in October.
Investors in Nigeria’s three-year bond,
who had anticipated a raise that never came, slacked investments in the country’s
high yield investment paper preferring to wait for the next monetary policy announcement to be made in
January 2012.
The devaluation pegged the Naira between #150-#160 to $1 Dollar, a move that also merged
the official rate with the interbank rate. The Naira hitherto exchanged between #145-#155 to $1 Dollar.
The restiveness in Nigeria’s Oil bearing
region which results in low output in the country’s oil production reduced economic growth to 7.72 percent earlier this year and to 7.4 percent
in the last two quarters, necessitating the devaluation. Nigeria is an Oil dependent mono-economy.
Sanusi Lamido Sanusi, Central Bank's governor however advised against over reliance on statistics.
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