Nigeria’s naïra is predicted to gain slightly in the coming week, supported by the Central Bank of Nigeria (CBN)‘s sale of U.S. dollars and a lack of strong demand for foreign currency from importers, according to analysis from CNBC Africa and ZAWYA. The naira was quoted around 1,478 to the dollar on the official market on Thursday, a slight improvement from the 1,485 naira to the dollar seen the previous week.
Key Factors Supporting the Naira:
- Central Bank Dollar Sales: The CBN has been actively selling dollars on the foreign exchange market, which increases the dollar supply and provides support for the naira.
- Subdued Foreign-Currency Demand: There is currently low demand for foreign currencies from importers, which also helps to stabilize the naira.
Market Sentiment:
- Traders expect the naira to trade within a tight range, and there is no expectation of a significant weakening in the near term.
- This stability is attributed to the continued support from the central bank and a lack of pressure on the currency from high demand.
