The
level of global liquidity will increasingly determine the naira – dollar
exchange rates as the Central Bank of Nigeria (CBN), confronts a new era of a
domestic economy that is more closely integrated and co-related with the global
economy.
Analysts
say the naira value will be influenced mostly by events outside the control of
the CBN. These are the level of global liquidity as U.S economic stimulus or
quantitative easing (QE) begins to get rolled back, which in turn will affect
the price of oil.
“The
outlook for the naira is hinged on the relative availability of liquidity in
the global economy,” said Ayo Teriba, CEO of Economic Associates, a risk
analysis and research firm.
The
naira traded at N163.93 against the
