Traders should take profits on a long trade on U.S. dollar-Nigerian naira 9-month non-deliverable forwards (NDFs) - a trade that bets on the currency's official rate falling heavily - JPMorgan said. "While we still expect the currency to weaken post elections, we believe the NDF curve in the front-end has appropriately priced this risk," JPMorgan analysts said in a note to clients. The 9-month NDF is currently trading at 612 naira to $1, according to Refinitiv data , compared to the official exchange rate of 460. Vote tallying is ongoing in Nigeria's presidential elections, with a Reuters tally of provisional results from 20 out of 36 states putting ruling party candidate Bola Tinubu in the lead. (Reporting by Rachel Savage, Editing by Marc Jones)
JOHANNESBURG, Feb 28 (Reuters) - Wall Street investment
bank JPMorgan closed a key bearish bet on Nigerian assets on
Tuesday, saying the risk of potential problems from the west
African country's national elections may be easing.
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