Nigeria Raises Rates, Devalues To Defend Collapsing Currency As Oil-Price Blowback Spreads

Having exposed the demise of various oil-producing nations' currencies previously, 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...

Forcing Nigeria to devalue...

 

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.

 

Unfortunately, the currency remains notably weaker...

 

Charts: Bloomberg