Nigeria Economic Update (Issue 33)

Issue 33

The naira depreciated by 4.3 percent to a record low of N313/$ at the interbank market segment on July 29, 2016. Precisely, the lack of liquidity in all FX market segments continues to weaken the naira. In order to increase FOREX liquidity, moderate inflationary pressures, encourage capital inflows and support the naira, the CBN may need to increase the supply of FOREX in the interbank market while simultaneously mopping up idle funds through the sale of securities.


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