The Nigerian naira is expected to remain steady on the back of sustained dollar sales by the central bank, traders said.
Nigeria’s central bank has increased its frequency of dollar sales to bureau de change operators from once to twice-weekly since last week, raising support for the naira.
The local currency was trading around N221 to the dollar at the parallel market on Friday, weaker than N218 a dollar a week ago.
The naira was unchanged at the official interbank market at N197 to the dollar, where the central bank has maintained a tight control by pegging it to the rate of 197 to the dollar.
“We expect that the increase dollar liquidity at the bureau de change market and the tightening of the noose around dollar cash transfers across the board should help strengthen the local currency in the near term,” one dealer said.
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