Nigeria: Analysts List Scenarios as CBN Seeks to Ward Off Currency Pressure

10 November 2014

Although the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) is not scheduled to meet until November 24, except it elects to convene an emergency meeting this week, a chain of factors including the fall in oil prices; depletion of fiscal and external buffers; renewed speculative and fundamental currency pressure; and high banking system liquidity would compel the central bank to consider a number of options that may feature at the all-important meeting.

The regulatory response is coming against the backdrop of the volatility in the currency market, which compelled the CBN to intervene in the forex market on Friday to prop up the value of the nation's currency after it fell to a five-year low the day before.

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