Lagos - The Central Bank of Nigeria (CBN) may be compelled to devalue the naira in the short term due to Nigeria’s dwindling external reserves as well as an anticipated elevated spending in the run-up to the 2015 elections, reports ThisDay.
The devaluation according to a new report becomes inevitable because of the increased frequency and magnitude of the CBN intervention in support of the naira.
The report published by Lagos-based research and financial advisory firm, Renaissance Capital (RenCap), noted that it has become unsustainable to continue drawing down on the reserves to defend the naira.
The report titled: “Nigeria: Emefiele’s Policy Agenda,” also said that 2014 will be another difficult year for the banking sector to deliver earnings growth.
Read more at ThisDay.
For the latest on national news, politics, sport, entertainment and more follow us on Twitter and like our Facebook page.