The Nigerian naira is likely to weaken next week as banks struggle to fill dollar orders by importers seeking to meet past due obligations in the face of lower hard currency earnings, traders said.
The naira has been weakening across the official and black markets since last month after the price of oil collapsed, prompting the central bank to devalue the currency and suspend foreign exchange sales to retail currency traders.
The naira eased to 387.30 per dollar on Thursday after it touched a new low of 387.70. The currency was quoted at 415 naira per dollar on the black market, much weaker than the spot market rate.
Foreign currency inflows into Africa’s biggest economy dried up after oil prices plunged as the coronavirus outbreak worsened an already tight currency market.