LAGOS -- The Central Bank of Nigeria, CBN, yesterday moved to
forestall the removal of Nigeria from the JP Morgan's Government Bond
Index as it increased banks' foreign exchange trading position.
The apex bank also reversed its decision to ban invisible transactions from the official foreign exchange market, thus making it easy for foreign investors to enter and exit from the nation's financial market.
The apex bank, however, banned banks from selling dollars purchased from the official market and interbank market to Bureaux de Change and other authorised buyers.
This is coming on the heels of further depreciation of the naira in the interbank and parallel market, where the naira depreciated by N4 and N2.5 respectively in three days.
Meanwhile, bank foreign exchange dealers yesterday agree to halt trading whenever the naira depreciates more than two per cent in the interbank market.
Last Friday, United States JP Morgan had placed Nigeria on a negative index watch on its Government Bond Index (GBI-EM), threatening to completely remove the country from the GBI-EM if there is no sufficient dollar liquidity in the interbank market to facilitate entry and exit of investors from the nation's financial market.
Read more Click here / www.trade4x.net
The apex bank also reversed its decision to ban invisible transactions from the official foreign exchange market, thus making it easy for foreign investors to enter and exit from the nation's financial market.
The apex bank, however, banned banks from selling dollars purchased from the official market and interbank market to Bureaux de Change and other authorised buyers.
This is coming on the heels of further depreciation of the naira in the interbank and parallel market, where the naira depreciated by N4 and N2.5 respectively in three days.
Meanwhile, bank foreign exchange dealers yesterday agree to halt trading whenever the naira depreciates more than two per cent in the interbank market.
Last Friday, United States JP Morgan had placed Nigeria on a negative index watch on its Government Bond Index (GBI-EM), threatening to completely remove the country from the GBI-EM if there is no sufficient dollar liquidity in the interbank market to facilitate entry and exit of investors from the nation's financial market.
Read more Click here / www.trade4x.net
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