WEEKAHEAD-AFRICA-FX: Naira seen under pressure as portfolio investors exit local treasuries

Date:

The Nigerian naira is seen under pressure as portfolio investors continue to exit local treasuries due to lower yields, traders said.

Thank you for reading this post, don't forget to subscribe!

Trades were thin by midday on Thursday as most wanted to buy the dollar, with little supply. The naira last traded at 362.50 for investors on Wednesday.

Yields on Nigeria’s treasuries have fallen to around 12 percent from as high as 18 percent a year ago after the government repaid maturing bills rather than roll them over as it has done in the past. The outflow by investors has also been worsened by interest rate rises in the United States.

“A rise in FX rate might compensate for the drop in yields and that could attract investors back again,” one trader said of the naira, which was quoted at 305.90 on the official market, supported by the central bank’s regular interventions.

Babatunde Akinsola
Babatunde Akinsolahttps://naija247news.com
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

Share post:

Subscribe

Popular

More like this
Related

FAAN shuts KFC outlet at MMIA

In response to a social media report by a...

Why Bobrisky was awarded Best Dressed Female – Actress Eniola Ajao

Nigerian filmmaker and actress Eniola Ajao has addressed the...

Minimum wage: TUC asks FG to pay FAAC allocations of defaulting states to workers

The Trade Union Congress (TUC) has asked the Federal...

Senegal President-elect, Bassirou Faye has changed the game – Shehu Sani

Former Kaduna lawmaker, Senator Shehu Sani said the President-elect...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading