Market News

The naira strengthened against the dollar on the Nigerian Foreign Exchange Market (NFEM), yesterday, rising to N1,354.26/$1 from N1,366.20/$1 on Friday, according to data released by the Central Bank of Nigeria (CBN).

According to traders, the local currency was steady at the parallel market yesterday as it was changing hands at between N1,440 and N1,445 per dollar.

In a report last Thursday, Reuters said traders expected the naira and the Zambian kwacha to continue to strengthen against the dollar until Thursday this week, while the currencies of Kenya and Uganda should be stable. Ghana’s cedi is expected to fall.

The news agency said: “Nigeria’s naira could gain as foreign exchange supply improves, driven by strong oil receipts and flows from foreign investors attracted by the high yields on the country’s debt. The unit was quoted at 1,364 to the dollar in intraday trading on Thursday, strengthening from 1,388 a week ago.

“The naira was changing hands at around 1,445 to the dollar in street trading.” It quoted a trader as saying that: “Market sentiment has swung firmly bullish on the naira, lifted by high oil prices and clearer FX rules. If the upcoming bond auction is strongly oversubscribed, liquidity could tighten further and push the currency toward the 1,350 level.”