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Naira may gain this week after closing Friday weaker to U.S dollars

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The Naira is likely to rebound from its loss this week, as the Central Bank of Nigeria (CBN) is expected to inject funds into the exchange market to prevent additional losses.

Nigerian currency fell against the U.S. dollar at the official market on Friday after it gained slightly the previous day.

The value of the local currency depreciated to N411.25/$1 in contrast to N410.70/$1 it traded on Thursday.

According to data from FMDQ Securities Exchange, the demand for forex increased by 128.2 percent or $78.23 million as transactions worth $139.23 million were executed compared with the $61.0 million achieved at the preceding session.

The inability of forex traders to meet the demands of their customers contributed to the decline the Nigerian currency suffered at the trading session.

Read also: Naira free fall continues, loses 8% of its value in first half of the year

However, this is likely to lessen this week as the CBN is scheduled to sell dollars to Bureau De Change Operators, and market experts anticipate an uptick in CBN activity in the investors and exporters window.

At the parallel market, it is difficult to tell how activities will play out this week as speculators watch to pounce on any pressure in the I&E window.

The Naira traded flat versus the US dollar, the pound sterling, and the euro on Friday last week in the unregulated market, according to Abokifx data.

The Nigerian naira finished the week at N503/$1 same rate it traded in the previous day.

It also traded at N710/£1 against the British pound, unchanged from the previous day, while the Euro finished the day at N595/€1, and again unchanged from the previous day.

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