Internationally-acclaimed ratings agency, Standard & Poor’s, S&P, has noted that even not now, the Central Bank of Nigeria, CBN, will have to at some point devalue the naira possibly by more than 15 per cent

The agency which disclosed this on Wednesday however pointed out that it saw the adjustments as likely to be gradual.

According to S&P’s Director of Sovereign Ratings, Ravi Bhatia, the recent measures by the CBN including stopping the sale of forex to importers of 41 items at the official forex markets could only delay the inevitable, Reuters reported.

Speaking at a press conference, Bhatia asserted that, “Another devaluation is inevitable… they will have no option but to devalue”.

Many investors are positioning for a devaluation of around 15 per cent. Bhatia said that sounded “reasonable”, though even more might be needed.

On Wednesday, the Naira hit an all-time low of 242.5 against the dollar on the parallel market operated by dealers in bureau de change, down 0.42 per cent from Tuesday.

The Naira has been hitting record lows at the parallel market since the latest central bank measures introduced three weeks ago.

Bhatia, who is not expecting the adjustment to be done in swoop, noted that, “I think at this stage the plan is to move in increments, not to do a ‘one big step’ devaluation like they would in the old days”.

The CBN has insisted that it is in no mood to devalue the Naira, given the risks to inflation from a weaker currency, and that it will not be focusing on the thinly traded parallel market when determining the exchange rate.

Local and foreign investors have also been nervous that Nigeria may lose its place in the benchmark GBI-EM local currency debt index. Bhatia said this was a “real possibility”, although he expected the government to adjust policy enough to maintain its membership.

“At some point they have to decide: do they want to go with their policies or do they want to stay in, and at the moment they are trying to do both, and it has worked,” said Bhatia.

“But there are issues there, and it is a concern.”

Local and foreign investors have seen a devaluation of the Naira as long overdue for Nigeria, which has been battered by the recent tumble in crude oil prices.

Following the naira devaluations in November and February, the CBN has recently focused on curbing access to foreign exchange at the interbank market for importers of some goods, introducing stringent restrictions three weeks ago.

According to S&P’s Director of Sovereign Ratings, Ravi Bhatia, the recent measures by the CBN including stopping the sale of forex to importers of 41 items at the official forex markets could only delay the inevitable, Reuters reported.

Items affected by the CBN’s policy include rice, cement , margarine, palm kernel/palm oil products, vegetable oils, meat and processed meat products, vegetables and processed vegetable products, poultry-chicken, eggs, turkey, private airplanes/jets, Indian Incense, Tinned fish in sauce(Geisha)/Sardines, cold rolled sheets, galvanised sheets, roofing sheets, wheelbarrows, head pans, metal boxes and containers.


The list include enamelware, steel drums, steel pipes, wire rods(deformed and not deformed), iron rods and reinforcing bars, wire mesh, steel nails, security and razor wire, wood particle boards and panels, wood fiber boards and panels, plywood boards and panel and wooden doors.


Others are toothpicks, glass and glassware, kitchen utensils, tableware, tiles-vitrified and ceramic, textiles, woven fabrics, clothes, plastic and rubber products, polypropylene granules, cellophane wrappers, soap and cosmetics, tomatoes/tomato pastes, euro bond/foreign currency bond/share purchases.

feedburna:
allow d damn abominable zoological currency to fall like a tree. they no get option. waiting for IRAN to release KANO oil



the zoo must fail

feedburna:
allow d damn abominable zoological currency to fall like a tree. they no get option. waiting for IRAN to release KANO oil



the zoo must fail

Bitterleafsoup:
They tried to block our hustle and ended up vomiting blood....

feedburna:


The truth is that evil has an expiring date. the time is now.

Bitterleafsoup:


Ndi igbo si na nwata etoghi eto juo ihe gburu nna ya, ihe gburu nna ya e gbu ya If you don't know what killed your father can kill you too! They have already began to show us that the Northern agenda is still the same as in was in in 60's and the 80's

feedburna:




history keeps repeating itself

Bitterleafsoup:
This time we have to use a different strategy they continue to pretend that our economic contribution means nothing to this country.
Biafra is an ideology.
We the people must hold our Igbo leaders accountable for development. We are not illiterates like those in other parts of the zoo that can't read or right and stand up to the elitist.
We must convince those men of great means and wealth to do as our fathers did and use that money to build the community.
As you are doing now we must gather outside support to further our cause.

feedburna:


you are a true Biafra. keep it up.

ideology:
Am waiting for liar Mohammed to blame GEj,

I was mad few months ago, when An educated man was blaming GEJ for failing naira value.

How I wish I can meet him again and ask him who is to be blamed, now that its 245

Nigerians should look inwards, the advantages of devaluation of naira is way higher.
The populace should be educated on what to do, Govt should also act asap.

The only problem is businesses that depend on FX and importation will suffer, but it's a shame for Nigeria to be importing agricultural products etc, imo, only heavy machines should be imported.