The naira has maintained relative stability around N1,367 per dollar, supported by Central Bank of Nigeria interventions and improved foreign exchange liquidity.
The currency opened at N1,366.5/$ in the interbank market on Friday as dealers anticipated a lack of immediate pressures on the naira following increased supply of dollars by the Central Bank of Nigeria, banks and other authorised dealers which has cushioned the local currency.
The News Chronicle reports that Nigeria’s reserves of about $52.5 billion enable the CBN to intervene effectively in the foreign exchange market to counter speculative pressures.
Analysts expected the naira to remain relatively stable at between N1.35 and N1.375 per dollar for the time being but said the situation will change if capital inflows, receipts from oil exports and foreign exchange interventions by the CBN continue.
The dollar index was trading close to the 100 barrier as investors anticipated developments in the stand-off between the US and Iran and sought safe havens while comments from US Federal Reserve officials suggested that they were considering tightening monetary policy.
For now, analysts said the naira was likely to remain stable against the dollar but inflationary expectations and shifts in global markets could undermine the currency in the near future.
