WEEKAHEAD-Nigeria-FX: Naira seen easing next week as Covid-19 crisis worsen dollar liquidity

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Nigeria’s naira is seen easing next week amid expectations the worldwide coronavirus outbreak will worsen dollar liquidity shortages in the West African country, traders said.

A few trades were carried out on the naira at 366.5 on the over-the-counter market on Wednesday, weaker than the 365 level at which the currency has been quoted for over a week.

Traders said liquidity is tight and that it is becoming harder to meet demand. The central bank has been helping to keep the naira stable at 307 on the official market but demand is rising.

Foreign inflows into the Africa’s biggest economy dried up after government bond yields slowed while a drop in oil prices triggered by the coronavirus outbreak has exacerbated hard currency supply worries.

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