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‘Investors on alert’ as Naira stabilises, CBN decides rates

April 20
18:34 2018

The Naira has remained stable against the Dollar for the week of April 16, supported by central bank intervention in the foreign exchange (Forex) market and rising commodity prices.

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The Central Bank of Nigeria (CBN) on Tuesday injected $210 million into the Forex market, “to enable market operators meet the requests of customers.”

The apex bank had on April 10, injected $210 million “to cater for requests in the various segments of the forex market.”

An upward trend in agricultural prices has been tied to “resilient demand for commodities… and improved weather conditions in key producing areas such as Western Africa.”

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Prices grew 3.9 percent month-on-month in March, with cocoa recording the largest increase out of nine agriculture commodities tracked by FocusEconomics.

Commenting on the impact of the Naira’s stability on investors’ confidence, Lukman Otunuga, research analyst at FXTM said: “The upcoming trading week will offer investors fresh insight into the health of Nigeria’s economy, with both the interest rate decision and GDP data scheduled for release.

“Further signs that Africa’s largest economy is building momentum will not only support bullish sentiment, but will also boost expectations of the Central Bank of Nigeria cutting interest rates in H2.

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“The IMF has predicted Nigeria will grow at 2.1% in 2018 and it will be interesting to see if the nation is able to exceed this projection.”

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