WEEKAHEAD-Nigeria-FX: Naira seen range-bound across currency markets

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Nigeria’s naira is seen range-bound across markets next week, traders say, after the central bank last week revised the currency rate on the futures market amid dollar shortages plaguing the economy.

The naira opened at 387.50 against the dollar, a range at which it has traded since this month. On the official market, backed by the central bank, the naira was quoted at 361.

The central bank revised the settlement quote for the 5-year currency to 578.37 naira on Wednesday, just off a record low of 584.11 naira touched last week.

Dollar demand from investors and importers has ballooned on the interbank market with payment obligations accumulating amid hard currency shortages triggered by an oil price crash. This has funnelled demand to the black market, where the naira traded at around 450 on Thursday.

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