Naira: The Panic Is Over

Following a period of considerable exchange rate volatility in Q309, we expect the naira to remain relatively over the short term. This view is premised on easing supply constraints in the foreign exchange market, as well as expectations of a broadly accommodative stance on the part of the Central Bank of Nigeria (CBN). We have accordingly set an end-2009 exchange rate target of NGN149.00/US$, though we do not discount the possibility of short-lived fluctuations in the interim.

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