Nigeria’s currency is at risk of being devalued after President Goodluck Jonathan suspended the central bank governor last week, eroding confidence in monetary policy and sending the naira to a record low.
The suspension of Central Bank of Nigeria Governor Lamido Sanusi, who sounded the alarm on alleged billions of dollars of missing oil revenue, sets back the fight against corruption in Africa’s largest crude producer.
The independence of Nigeria’s central bank may be the biggest casualty of President Goodluck Jonathan’s suspension of Governor Lamido Sanusi, who has worked to build policy credibility in Africa’s biggest oil producer.
Nigerian President Goodluck Jonathan suspended central bank Governor Lamido Sanusi in a surprise move that halted bond trading and sent the naira to a record low, after his accusations of missing oil revenue sparked a public outcry and criticism against the government.
Nigeria’s central bank said it has adequate reserves to keep defending the naira as the slumping currency prompted a selloff of the country’s stocks, with the all-share gauge posting the world’s worst performance today.
The Bank of Zambia called an emergency meeting with lenders to probe a drop in the nation’s currency to a record against the dollar, two weeks after Ghana limited foreign-currency sales to halt a slide in the cedi.
The naira weakened for a second day to its lowest since 2011 as investor inflows were said to have slowed and foreign-exchange demand remained strong after Nigeria’s central bank lifted limits on sales of dollars.