The Nigerian naira’s outlook remains stable in the near term as the central bank efforts to improve dollar liquidity and achieve exchange rate convergence yield positive results, but investors remain concerned over the lack of a flexible exchange rate.
The naira firmed to about 305.60 to the dollar on the interbank market from 306.25 last week and was quoted at 390 a dollar on the black market, better than the 391 level where it traded last week.
It was quoted at 382.63 per dollar in the period enabling foreign exchange trading at rates set by buyers and sellers, according to the market regulator FMDQ OTC Securities Exchange.
“We expect the naira to trade within the prevailing band in the coming days, but investors are still worried over the multiplicity of exchange rate in the market,” one senior currency trader said referring to the multiple exchange rate.
The bank has been intervening aggressively since February to try to narrow the spread between the official and black market rates and has sold more than $4 billion.