November 14, 2021

PIA: Financial Experts Raise Prospects of FX Market Stability

The excitement over the commencement of the long-awaited Petroleum Industry Act is giving rise to a new wave of optimism that the anticipated flurry of investments in the oil sector and the planned removal of fuel subsidy will simultaneously boost forex supply and reduce pressure from the market, reports Festus Akanbi

For obvious reasons, save for the initial and sustained reactions to the signing of the Petroleum Industry Bill (PIB) into law, discussions in business and economic circles last week dwelt essentially on the instability in the foreign exchange market and the corresponding fall in the value of the naira.

Although the week opened with a measured degree of optimism as naira recorded marginal gains against the US dollar at the official market (Nafest window), analysts said the gain was too insignificant to raise traders’ hope in the market.

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