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Nigerian naira is trading at fair value says Pabina Yinkere
Lagos, Nigeria (Capital Markets in Nigeria) — Is naira overvalued or undervalued? It depends on which methodology is used; results could point to an overvaluation or undervaluation. Using a relative PPP methodology, the result suggests the currency is trading near its fair value at N199-200/USD and we are somewhat inclined to this conclusion. Practically, it is unlikely to trade around these levels under a floating market arrangement as the market is pricing in economic risks associated…
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