WeekAheadFX: Naira seen weaken to N470 on black markets

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Nigerian naira banknotes are seen in this picture illustration, September 10, 2018. Picture taken September 10, 2018. REUTERS/Afolabi Sotunde/Illustration - RC15864538F0

Nigeria’s naira is seen weaker on the black market as demand shifts to the unofficial market after the central bank this week told lenders to stop processing new trade documents for maize imports, traders said.

The naira is quoted on the unofficial market at 470, weaker from 465 per dollar the previous session. The central bank last week adjusted the naira by 5.5% to 380 naira on the official market, close to the over-the-counter spot market, widely used by investors and importers.

The bank has been under pressure from the World Bank and the International Monetary Fund to carry out currency reforms to qualify for budget-support loans, and from the Nigerian government to get more naira for its crude oil receipts.

The central bank this month unified its multiple exchange rates to ease forex shortages that have plagued the country for months, traders said, adding that dollar supplies had yet to improve.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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