Nigeria’s naira is seen holding steady, helped by a central bank intervention.
Last week, Nigeria’s central bank sold around $330 million to meet part of a backlog of foreign exchange demand by manufacturing firms, while dollar supply from international money transfer agencies has helped ease a shortage at the parallel market.
Naira is seen stable around its present level at both the official interbank and parallel market as the central bank steps up support for the local currency, traders said.
The local currency was steady at N470 to the dollar on the parallel market on Friday, same level as last week, while the naira was quoted at N315 at the official market.
Ghana and Uganda’s currencies are also seen faring well against the dollar over the next week on the back of a typical seasonal surge in demand.
However, the Kenyan shilling could weaken in the coming days due to strong dollar demand from manufacturers and oil importers while inflows from horticultural products, exporters and charities slowed.
The Ugandan shilling is also forecast to lose ground as importers ramp up demand for hard currency to pay for merchandise shipments ahead of the Christmas shopping season.
The kwacha is seen coming under pressure against the dollar next week on the back of a squeeze in the supply of hard currency.
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