WEEKAHEAD FX: Nigeria’s naira seen buffered by offshore investors

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Nigerian naira notes are seen in this picture illustration March 15, 2016. REUTERS/Afolabi Sotunde/Illustration/File Photo - RTSFNNR

Nigeria’s naira is seen being supported by offshore investors returning to Africa’s largest economy.

The local currency was quoted flat at 368 to the dollar on the black market on Thursday, while commercial lenders traded it at 305.95 to the dollar in the interbank market against 306.2 a dollar last week.

At the investor forex window, the naira was quoted at 365.34 per dollar on Thursday.

Nigeria’s currency window for investors and exporters was established on April 24 and it has traded more than $3.83 billion. Traders said the window had spurred a gradual return of confidence in the OPEC member country’s economy.

“We have seen increased dollar inflows(s) from offshore investors into the economy … this has helped stabilise the currency market,” one senior currency trader told Reuters.

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