- CBN Dollar Flow, Foreign Investors to Support Naira
The naira is forecast to trade in a narrow range in the coming days, and is expected to get support due to dollar inflows from the Central Bank of Nigeria and offshore investors.
The local currency was quoted at 364/dollar on the black market on Friday, slightly firmer than 368 last Friday.
At the official interbank market the naira has stuck around 305.90/dollar since August 2016.
On the CBN Investors and Exporters FX window, the local currency was quoted at 367 to the dollar on Friday, Reuters reported.
The cedi is expected to firm, lifted by dollar inflows from investors interested in buying a five-year Treasury bond, helped by renewed investor confidence after the Ghana Central bank cut its policy rate this week.
The local unit recovered this week after losses in mid-July triggered by comments by President Nana Akufo-Addo that Ghana would not extend its $918m IMF aid deal beyond April 2018.
Meanwhile, Uganda’s shilling and Zambia’s kwacha are forecast to weaken against the dollar in the next one week, according to traders.
Kenya’s shilling is expected to hold steady in the next one week, and traders said they anticipate the central bank to sell dollars to keep it from weakening further.
Specifically, the Ugandan shilling is forecast to weaken due to dollar demand from the energy sector.
