naira slumped to 478 on black market
Nigeria’s naira is expected to lose value against the dollar in the week ahead as demand pressures from importers build ahead of Christmas shopping season.
The naira NGN= is expected to weaken on the black market in the coming week as demand pressure resurfaces with importers stocking up goods ahead of Christmas sales in the wake of dollar shortages from official sources, traders said.
The naira fell to 478 per dollar on the black market on Thursday after it hit a 12-week low of 475 on the parallel market on Monday.
The currency was quoted on the official market at 381 per dollar, a level it has been at since July.
Traders had expected the naira to trade flat on the black market amid hopes higher oil prices would boost Nigeria’s dollar flows but demand is swelling faster than had been anticipated, traders said.
The naira traded at 385.93 on the over-the-counter spot market NAFEX=FMDQ, widely quoted by investors and importers, on thin volumes.