WeekAheadFX: Naira seen flat as chronic dollar shortage worsens

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Nigeria’s naira is seen flat in the week ahead in a market that is seeing low activity owing to chronic dollar shortages that have slowed down businesses and shifted forex demand to the black market, traders said.

The naira was quoted at a low of 475 per dollar on the unofficial market on Thursday, a level it has been this week, while the currency was flat on the over-the-counter spot market at 385.58 naira.

Volumes on the spot market, widely quoted by investors and importers, have been declining daily, traders say, citing the absence of central bank’s intervention or foreign inflows, despite rising oil prices.

Dollar shortages have plagued the country for months after sharp falls in the price of oil, Nigeria’s main export.

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