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Nigeria's interbank rate rises as banks pay for dollar purchases
Nigeria's overnight lending rates rose 20 percentage points last Friday, after the Central Bank of Nigeria sold dollar forwards to offset a backlog of forex obligations from the money market. Steve Osho Co-Managing Partner and Head of Advisory at Comercio Partners join CNBC Africa to review the fixed income and forex markets this week.
Mon, 24 Apr 2017 08:06:59 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- CBN's strategies to bolster the Naira and manage the currency's fluctuations
- Introduction of multiple FX windows to streamline demand and supply dynamics in the market
- Evaluation of CBN's regulatory stance on forex market interventions and implications for investor confidence
Nigeria's overnight lending rates experienced a significant 20 percentage point increase last Friday, following the Central Bank of Nigeria's move to sell dollar forwards in order to address a backlog of Forex obligations in the money market. In a recent interview on CNBC Africa, Steve O'Shore, the Co-Managing Partner and Head of Advisory at Comercio Partners, provided insights into the developments in the fixed income and foreign exchange markets for the week. The discussion centered around the challenges faced by the Nigerian currency, the Naira, and the interventions by the CBN to stabilize the forex market. O'Shore highlighted several key points during the interview, emphasizing the impact of CBN's policies and the introduction of new FX windows. The conversation also delved into the potential implications of these measures on investor confidence and the future outlook for the Nigerian currency. Overall, the discourse shed light on the dynamics at play in the country's forex market and the regulatory efforts to maintain stability.
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