Despite the woes bedeviling Nigeria’s economy, a Financial Derivates Company has reported that the Naira has appreciated in all segments of the foreign exchange market.
According to the FDC report, the country is currently faced with “limited options and hard choices” because oil output is dropping as power supply continues to fall, however, Naira is appreciating.
“The naira has appreciated in all segments of the forex market: N198 at the interbank, N217 at the parallel, and N199 at the International Air Transport Association segment.
“The forex demand at the interbank market is slowly normalising due to the delayed impact of the devaluation and consumer resistance to higher prices at the retail level. Huge payments to oil marketers have increased money supply saturation in the economy,” FDC report stated.
The FDC report also forecasts that the recent harmonisation of the Cash Reserve Ratio on public and private sector deposits to 31 per cent by the Central Bank of Nigeria’s Monetary Policy Committee will trigger some reaction in the banking system.