Naira Stable as London Court Releases $200m Guarantee to Nigeria
The Nigeria’s local currency, Naira stabilises across market Tuesday as London Court Awards $200 million in favour of the country from the ongoing case with P&ID.
The amount which was guarantee put in place as security in respect of the execution of the P&ID US$10 billion Arbitral Claim was released to Nigeria as evidence against the firm increased.
With this addition, the nation’s external reserves rise tby equivalent amount as the apex bank latest data shows US$35.75 billion.
In the foreign exchange market, analysts at Chapel Hill Denham said dollar pair against naira rate was broadly unchanged across all segments on Tuesday.
In the parallel market, the currency pair was also unchanged at N467.00.
Similarly, analysts said Naira ontinued to trade within a tight band in the Investors and Exporters Window, strengthening marginally by 0.06% or 25 kobo to N385.75.
The CBN had released a press statement earlier, stating that external reserves were boosted by US$200 million.
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This was coming after the London Commercial Court ordered the release of the US$200 million guarantee put in place as security in respect of the execution of the P&ID US$10 billion Arbitral Claim.
The court also awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5 million.
Chapel Hill Denham said while the amount is insignificant in the context of Nigeria’s current balance of payments crisis, the eventual resolution of the claim in Nigeria’s favour will remove one of the key risk factors weighing on the macroeconomic outlook.
Naira Stable as London Court Releases $200m Guarantee to Nigeria
