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Foreign Reserves: Investors Call For Another Round Of Naira Devaluation

Investors have called for another round of naira devaluation by the CBN despite the recent increase of the country’s foreign reserves.

According to Standard Chartered Plc and London-based Duet Asset Management CBN needs to devalue the naira and loosen capital controls.

Ayodele Salami, overseer of around $450 million of African stocks as chief investment officer at Duet, said “oil’s rise isn’t enough to eliminate the need for a change”.

Nigeria won’t attract inflows until it weakens its currency, he added.

Samir Gadio, the London-based head of Africa strategy at Standard Chartered, which forecasts the official exchange rate will be steady for at least the first half of 2017, also said Nigeria will eventually take the step.

“Eventually, they’ll have to revert to a more flexible currency regime. But for the time being, there’s no indication from policy makers that this will happen,” he said.

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