CBN adjust Naira peg again

The Central Bank of Nigeria has adjusted the exchange rate peg to 196.90 naira against the dollar from the 196.95 set last week.

Data on the bank's website showed on Thursday. Dealers said the central bank had sold dollars to the interbank market at the new rate the previous day, dismissing the move as a currency appreciation as it wasn't market driven, but noted it could signal the coming of a new policy.

The naira opened trade on thin volumes at 198.90 to the dollar on the interbank market. It traded at 220 naira on the black market on Thursday.
The central bank made a tiny adjustment to the exchange rate peg last week, with industry watchers saying the move may indicate that the bank is beginning to think about how to loosen its currency regime.

Last week JPMorgan said it may eject Nigeria from its Government Bond Index (GBI-EM) by the year-end unless Africa's biggest economy restored liquidity to currency markets in a way that allowed foreign investors tracking the benchmark to transact with minimal hurdles.
 
  Meanwhile the country's foreign reserves fell to $29.18 billion by June 9, down 1.65 percent from last month, as the apex bank moved cash to defend the local currency.