CBN adjusts FX rate peg to 196.95 per dollar in possible sign of looser currency regime ahead

The Central Bank of Nigeria on Thursday made a tiny adjustment to its exchange rate peg to 196.5 to the dollar, from the 197 it set in February after the currency's value was eroded by the fall in oil prices, data on its website showed on its website.

The bank adjustment, dealers said that the change was too small to be called a revaluation, particularly in the face of dwindling foreign reserves.

The Naira traded on thin volumes at 198.95 to the dollar on the interbank market on Thursday, before two large sales totalling $36.4 million were done at 196.95 naira, around the market close, dealer said, attributing the sales to the central bank. The unit traded between 215 to 218 in the parallel market.

One economist said the move may suggest the bank is testing out the market to see whether it is ready for a looser currency regime.