CBN Adjusts Forex Peg as Naira Hits N228

The Central Bank of Nigeria on Tuesday lowered the naira peg to 196.95 against the dollar from 196.90 it set last week.This made it the fourth time the CBN had adjusted the peg since it was introduced in February, Reuters reported.
This happened just as the naira tumbled further to 228 against the dollar at the parallel market on Tuesday from 265 on Monday. Traders said the move might indicate that the bank was beginning to think about how to loosen its currency regime. Reuters reported that the yield on the Federal Government’s 2024 bond in the JP Morgan Government Bond Index rose by a 40 basis point to 14.74 per cent.

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