WeekAhead FX: Nigeria’s unofficial naira rate seen trade firmly against US dollar as CBN sells more forex to investors

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Nigeria’s unofficial naira rate are expected to trade slightly firmer against the U.S. dollar next week.

Nigeria’s naira NGNFX=BDCN could firm on the black market next week as the central bank sells forex to investors and curbs import demand to support the currency, traders said.

The naira was 2.2% firmer than a week ago at 457 naira per dollar on the unofficial black market on Thursday.

Traders say the central bank has been selling forex on the spot and forward markets to foreign investors stuck in Nigeria to repatriate funds while curbing import demand after it cut rates last month to spur local production.

The naira traded at 386.21 on the over-the-counter spot market NAFEX=FMDQ, widely quoted by investors and importers, on volumes in excess of $58.52 million on Wednesday.

The naira was quoted at 381 per dollar on the official market, which is supported by the central bank.

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