Naira Faces Pressure on Rising Dollar Demand, Outflows

The combination of tightening global financing conditions, which has resulted to capital outflows in the country, the elevated global risk aversion, 2019 election uncertainties and high services payments are likely to put pressure on the naira going into next year, THISDAY has learnt.

Analysts at CSL Stockbrokers Limited and the Financial Derivatives Company Limited (FDC), who stated this in two separate reports obtained by THISDAY, argued that capital repatriation by foreign investors was also expected to heighten dollar demand.

While on the parallel market, the naira trades relatively stable at N361 per dollar – N362 per dollar, currency pressures are building at the Investors’ and Exporters’ foreign exchange (I&E) window, where transactions are now being executed at an average rate of N364 per dollar, compared to N362 per dollar-N363 per dollar in previous months.

THISDAY, November 21, 2018

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