Nigeria Said to Let Market Set Naira Rate on Exchange Window
- Central bank Governor Emefiele said to tolerate naira dropping
- Naira forward contracts jump to highest levels since March
A gas station attendant displays a large bundle of naira banknotes after selling fuel to a customer in Port Harcourt, Nigeria.
Photographer: George Osodi/BloombergNigeria’s central bank will let the market determine the naira’s rate in a new foreign-exchange window for portfolio investors as the nation struggles to revive its economy amid a dollar shortage. Naira forward contracts and banking stocks rose.
Governor Godwin Emefiele told senior bankers that he would tolerate the naira weakening in the window, which started today, according to a person who attended meetings with the policy maker over the past two weeks. While that may cause the currency to depreciate to its black-market level, the central bank probably won’t devalue the interbank exchange rate, the person said, declining to be identified because he wasn’t authorized to speak publicly.