Foreign Bonds and Stock investors have about $2.5billion trapped in Nigeria.
This was revealed on Twitter by Bloomberg’s Paul Wallace. He said “Foreign bond and stock investors have about $2.5billion trapped in Nigeria. They are unable to get their money out due to Foreign exchange shortages.”
He further stated that “The Central Bank’s determined to keep the Naira stable, even if it’s overvalued”
In responding to queries to his tweet, he further said “The parallel rate for one. If the official rate is 380/USD and the parallel rate is 475/USD, then the currency is clearly overvalued at the former rate. You don’t have gaps like that when currencies are fairly valued”
Foreign bond & stock investors have about $2.5bn trapped in #Nigeria, according to one analyst. They're unable to get their money out due to FX shortages. The central bank's determined to keep the #naira stable, even if it's overvalued. https://t.co/ic13HFXH74 @AlakeTope @osaeB pic.twitter.com/NJ0O2nijNS— Paul Wallace (@PaulWallace123) August 14, 2020
Nigeria’s junta led by Muhammadu Buhari has struggled to keep grasp of the economy despite only recently appointing a new economic team.
Despite the high powered CV and wealth of experience displayed by this team it seems like they too have struggled to get a grip.of the economy.
The exchange rate has continued to rise with the £ selling for as high as N610 and $ for as high as N475 at the parallel market.