Forex Forecast: Nigerian Naira under pressure ahead

dollar to naira

The Nigerian naira is expected to come under additional pressure against the dollar next week due to a shortage of the hard currency.

The naira was trading at N357 to the dollar on the parallel market, lower than the N352 per dollar it maintained throughout last week, but it has remained largely stable at between N282 and N283 to the dollar on the interbank market over the past two weeks.

However the thought is that the Nigerian naira could depreciate on the parallel market even further as vacationers seek dollars to finance their summer holidays abroad.

Traders said the Central Bank of Nigeria (CBN) is the main supplier of dollars in the market, which has helped with the stability in the official rate, and that is expected to continue into next week.

CBN removed the naira peg last month and after a short period of uncertainty, the parallel or black market is seen to be thriving as CBN has maintained some restrictions on access to dollars in the official market by firms and individuals including limiting forex access for importation of 41 categories of items.

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