By InvestAdvocate
Lagos (INVESTADVOCATE)-The 241st Monetary Policy Committee (MPC) meeting is underway in Abuja Nigeria amidst oil prices decline.
The slump in the prices of crude oil in the international market may have led to a reduction in the 2015 allocation to states and local governments from N3.969 trillion in the 2014 budget to N3.937 trillion in 2015.
Similarly, the Central Bank of Nigeria (CBN) is battling to defend the naira as the local currency has fallen 10.5 percent to a new low of N177.45. The naira has been under immense pressure since June when the world’s oil prices began to slump.
The CBN has been selling between $100 million to $200 million in each intervention; which has resulted to high depletion in Nigeria’s foreign reserves.
To top the agenda at the two-day MPC meeting, the bankers committee will focus on the issue of saving the naira from further decline ; but industry analysts expects the devaluation of the currency.
