Nigerian naira stabilises, stocks down - here's how the Nigerian market reacted to the reappointment of Godwin Emefiele as CBN governor

Naira to dollar rate in Nigeria
  • Mixed reactions grip Nigerian markets on Friday following the renomination of Godwin Emefiele as CBN governor.
  • Nigerian stocks close negative as investors lose N136.88 billion this week
  • Nigerian naira continues to trade stable at N360 to the dollar.

Mixed reactions gripped the Nigerian markets on Friday, a day after President Muhammadu Buhari renominated Central Bank of Nigeria (CBN) governor Godwin Emefiele for a second term.

On Thursday, Nigerian Senate leader, Bukola Saraki said President Buhari requested for the confirmation of the apex bank chief for another term in office.

Here's how the Nigerian market reacted to the renomination of Godwin Emefiele:

Nigerian equities market dropped to an almost 2-year low on Friday as investors. Traders told Reuters that the traders viewed the nomination of central bank governor for a second term means that there may be no change to the monetary policy that has kept liquidity tight.

The NSE all share index depreciated by 0.17% to close at 28,847.81 points as against 0.24% depreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at -8.22%.

Nigerian bonds rallied as yields move inversely to prices, fell across maturities and extended losses on Friday.

“Emefiele’s re-appointment has provided support for a rally that started on the bond market this week. Offshore buyers have welcomed the re-appointment,” one trader at the Nigerian unit of an international bank told Reuters.

Analysts expressed hope that Emefiele's return could help the market to rally further as investors hunt for yields on the debt market. .

Nigerian local currency firmed on Friday closing at N360 to the dollar at the parallel market and N307 per dollar at the official market.

At the I&E FX Window, the currency 0.03% to close at N361.09 against the dollar.

Since last year, the Naira has been trading tightly at N360 to the dollar at the forex market amid Central Bank of Nigeria (CBN) regular interventions.

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