Naira Cuts Back Gains as Traders Foresee Stability

The value of the naira rescinded some of the gains it made earlier this week at the official market as traders say they expect the value of the naira to remain relatively stable at both the official and parallel markets in the coming days.

From N1,520.74 which it closed on Wednesday, the value of the naira at the NEFM market, was down to N1,525.98 to the dollar. Similarly, it closed weaker at the parallel market selling at N1,570, down from N1,560 which it closed on Wednesday.

Nigeria’s naira is seen broadly unchanged on both the official and parallel markets, supported by central bank interventions and foreign portfolio inflows.

“The naira is expected to remain relatively stable in the coming week largely due to continued inflows from portfolio investors drawn by high yields that are boosting market liquidity,” a trader said.