The Naira has been the worst performing currency this year among more than 150 across the world and it has depreciated 37 per cent against the dollar.
Over two months after the Nigerian government and the CBN finally decided to devalue the Naira, the country is starting to finally get some reward from it.
In the past two weeks, Exotix Partners LLP and Standard Bank Group Ltd. have told their clients, most of whom left the country after the government and the CBN start imposing capital controls from late 2014, that they should start buying Naira assets once again.
According to a Bloomberg report, the Naira has been the worst performing currency this year among more than 150 across the world and it has depreciated 37 per cent against the dollar since the CBN dropped its N197/dollar peg on June 20.
Since then bond yields have jumped to more than 20 per cent and the Naira also strengthened 4.6 per cent to N315/dollar on Tuesday after falling to a record N350.25/dollar on August 19, 2016.
“The cheap naira is attracting foreign investors,” said Lutz Roehmeyer, a money manager at Landesbank Berlin Investment, which oversees about $12 billion of assets, according to the Bloomberg report.
“At 325 per dollar, the naira is too weak,” he added saying that Landesbank anticipates a rebound.
Also, the yield on benchmark government naira notes due for January 2026 has shot up 226 basis points since June to 15.08 per cent.