Devaluation: Foreign investors advised to stake in Naira assets –

Foreign investors may have started reconsidering buying naira assets again, more than two months after the Central Bank of Nigeria (CBN) floated the currency which has led to a depreciation of its value.

Exotix Partners LLP and Standard Bank Group Ltd. have in the past two weeks, been advising their clients, most of whom left Nigeria after the country’s imposition of capital controls from late 2014, to start buying naira assets again.

The naira has depreciated 37 per cent against the dollar since the CBN abandoned its peg on June 20, while bond yields have jumped to more than 20 per cent.

However, the naira strengthened 4.6 per cent to N315 per dollar yesterday, after falling to a record N350.25 on August 19.

Reuters in a report, yesterday, quoted a money manager at Landesbank Berlin Investment, which oversees about $12 billion of assets, Lutz Roehmeyer, to have said that “The cheap naira is attracting foreign investors.”

He, however, noted that “At N325 per dollar, the naira is too weak,” and added that Landesbank was anticipating a rebound.