Tuesday, 17 February 2009

Governor Chukwuma Soludo

The naira's 20 percent depreciation against the dollar, prompted the central bank governor to make an impromptu visit to London where Silk Invest was invited to a lunch briefing.

According to Governor Chukwuma Soludo currency-trading restrictions imposed last week are "temporary," designed to avoid the central bank running down international reserves.

Policy makers will allow the naira to trade within a band of plus or minus 3 percent, although he repeatedly failed to mention the target level. The idea appeears to have been to let the naira overshoot on the downside so that it could get some positive momentum back behind it.

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