Having exposed the demise of various oil-producing nations' currencies previously [2], it is noteworthy that Nigeria folded today and devalued the Naira peg to the USDollar by over 8% from 155 to 168 and widened its 'intervention' bands from 3% to 5% (the upper band is where the market is trading). Furthermore, the central bank raised rates from 12% to 13%.
All oil-producing nations are seeing dramatic pressure on their currencies since oil topped...
[3]
Forcing Nigeria to devalue...
[4]
The adjusted peg appears to 'try' to cap the collapse of the currency at current levels after the old peg-band was crushed a few weeks ago... and Nigeria is rapidly running out of reserves to defend its currency.
[5]
Unfortunately, the currency remains notably weaker...
[6]
Charts: Bloomberg
