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Deutsche Bank Bullish on Naira, Adds Nigeria to Frontier FX Watchlist - BLOOMBERG
By Ray Ndlovu
Deutsche Bank AG is betting the Nigerian naira will strengthen against the US dollar as it adds the West African nation to its frontier foreign exchange monitor, a tool it uses to watch currencies in smaller, less liquid markets.
Strategists and economists at the Frankfurt-based lender see the naira “undervalued” and offering attractive carry alongside favorable real rates, it said in a client note on Monday. “The principal risk to the outlook is from the fiscal side,” it said, pointing to the debt management office’s bond issuance calendar for this quarter which signals “elevated issuance levels.”
