The naira is at risk of being devalued after President Goodluck Jonathan suspended the Central Bank Governor, Mr. Lamido Sanusi, last week, eroding confidence in monetary policy and sending the naira to a record low.
Bloomberg reported that the naira, which rose for the first time in six days on Monday, posted its biggest five-day drop in eight months last week.
The yield on Nigeria’s July 2023 dollar bond had its steepest one-day jump on record after Sanusi’s removal on February 20. The security has lost 2.3 per cent this year, compared with a 0.6 per cent drop in the JPMorgan Chase & Co. index of African sovereign debt.
