Naira to Remain Steady on CBN Dollar Supply

US dollar
  • Naira to Remain Steady on CBN Dollar Supply

The naira is seen steady on the foreign exchange market in the coming days as the Central Bank of Nigeria continues to inject the United States dollar into the market to improve liquidity.

The CBN has also continued to tighten naira liquidity to curb pressure on the local currency.

The local currency was quoted at 365 to the dollar on the black market on Thursday, stronger than 370 per dollar last Thursday, Reuters reported.

The naira was quoted by commercial banks at 306.20/dollar on the interbank market against 305.5/dollar last week.

On the investor forex window, the naira was quoted at 365.41/dollar.

“It appears that the CBN is comfortable with the prevailing rates in the markets and we do not envisage any change soon as the bank sustains its intervention and tighten naira liquidity,” the President, Association of Bureau de Change Operators of Nigeria, Aminu Gwadabe, said.

Meanwhile, Ghana’s cedi is seen steady next week on stable interbank forex liquidity inflows, helped by regular central bank’s dollar sales, an analyst said.

The local unit was trading at 4.3900 per dollar by mid-morning on Thursday, almost unchanged from 4.3902 a week ago.

“The cedi has remained firm this week largely on improved liquidity flows and we don’t expect much departure from this narrative in the coming week,” a commercial bank trader said.

The Tanzanian shilling is expected to remain firm in the days ahead, buoyed by a slowdown in demand for the US dollars, while Kenya’s shilling is expected to weaken due to demand from oil and merchandise importers buying dollars.

The Ugandan shilling is forecast to trade in range over the next one week as investors show little appetite for the greenback at levels above 3,600, which they consider to be on the higher side.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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