The naira is expected to remain stable against the United States dollar in coming weeks as the Central Bank of Nigeria continues to intervene in the foreign exchange market.
The CBN on Wednesday injected $210m into the foreign market, about a week after it injected $200m into the market.
Analysts and forex traders said the naira would likely remain stable in the week ahead, boosted by the CBN’s ability to intervene in the currency market amid rising foreign exchange reserves and higher crude prices.
The country’s external reserves had hit $47bn as of April 16, providing more ammunition for the central bank to defend the naira.
The country runs a two-year-old multiple foreign exchange system, which has been criticised by the International Monetary Fund.
On the official market, the naira was quoted at around 305.60/ dollar on Thursday, while importers bid for dollars from the CBN was 337/dollar.
The local currency traded at around 360/dollar at the Investors and Exporters window.
According to Reuters, demand for dollars by importers looking to lock in favourable rates after the Kenyan shilling’s recent gains are likely to weigh on the currency.
The Kenya’s currency could come under pressure from the dollar in the coming week from importers seeking to take advantage of the shilling’s recent strengthening.
The Zambian kwacha is likely to hold firm next week supported by hard currency sales from companies preparing to pay taxes and other month-end obligations.
The Ugandan shilling is expected to weaken over the next few days, hurt by projected higher demand for dollars from importers.
The shilling is likely to trade in the 3,695/3,705 range over the next one week, he said.
The Tanzanian shilling could remain under pressure in the days ahead due to surging dollar demand from oil, manufacturing and construction sectors amid subdued inflows of the US currency, analysts said.