Naira expected to be stable due to Dollar flows

The Nigerian naira is expected to be stable in the coming week. The Naira is seen stable across the board in the near term on increased dollar supply to both the official interbank window and the black market.

It has been trading around 382 to the dollar on the black market in the last two weeks, while at the interbank market the naira was trading at around 305.40 per dollar.

The Central Bank of Nigeria has been intervening on the official market to try to narrow the spread between the official interbank and black markets. It has sold over $4 billion since February, improving dollar supply and providing support for the naira.

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BaromterNG recalls that Central Bank of Nigeria said on Tuesday 30th May 2017, it had sold $482.6 million to improve dollar liquidity in the foreign exchange market and curb pressure on the local currency. Before that Apex Bank has released $81.2 mln for dollar requests on Monday 8th may 2017 in a continuing drive to improve liquidity.

In an emailed statement, the bank said it provided $44 million to meet requests for expenses such as medical and school fees, and to cover travel allowances. It said a further $37.2 million was provided for small- and medium-sized enterprises.

The bank has said that on 23rd of May 2017,  it planned to sell an undisclosed amount of dollars to settle a backlog of foreign exchange demand for airlines, fuel and raw material imports, traders.Traders said the central bank had asked commercial lenders to submit bids for dollars to cover the previously unmet demand for hard currency for specific sectors as it tries to improve dollar liquidity and ease pressure on the naira.

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