WeekAhead-Nigeria-FX: Naira seen ease against Dollars as foreign flows into treasury bills slow, banks scramble for dollars

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NIGERIA The naira is likely to ease next week as foreign flows into treasury bills slow and banks scramble for dollars to settle maturing futures in the local currency, traders said.

The naira was quoted at 360.50 per dollar on the over-the-counter market, a level where it traded last week. However, traders said most banks were bidding for dollars.

The currency exchanged at 360.00 at retail bureaus and 306.90 on the official market, supported by the central bank.

Traders said millions of dollars worth of naira futures have matured, adding to dollar demand pressure, while foreign investors are on the sidelines after rates fell slightly following the central bank’s Tuesday treasury auction.

“The current illiquidity started two days ago and is worsening. If the tightness continues into next week (the) rate might get to 361,” one trader told Reuters.

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