Nigeria, March 10 -- Only a few weeks ago, analysts expected the local currency to strengthen below N1,300 after a period of relative stability.

However, market sentiment shifted quickly as the exchange rate weakened again, settling around N1,425 in the official market for the first time in several weeks.



The reversal has coincided with the Central Bank of Nigeria's decision to cut interest rates by 50 basis points, a move officials defended by pointing to external reserves nearing 50 billion dollars and signs of improved stability in the foreign exchange market. Despite that outlook, market dynamics appear to have moved in a different direction.



The News Chronicle understands that policymakers may not be eager to push the naira...