CBN may support naira next week

The Central Bank of Nigeria may offer support to the naira with foreign exchange sales next week, it has been learnt.

According to foreign exchange dealers and analysts, the CBN is expected to continue almost daily sales of foreign exchange next week to ease pressure on the naira as foreign investors stay on the sidelines.

On the official market the naira, which opened on Thursday at 320 per dollar, firmed to close at 310 after the central bank sold the greenback, Reuters reported.

The currency had hit an all-time low of 350 per dollar on Tuesday on the official market.

On the unofficial market, the naira was quoted at 395 to the dollar.

The Ghana’s cedi is seen stable against the dollar next week, supported by rising foreign exchange inflows from offshore investors seeking local currency to trade in government debt securities.

The cedi was trading at 3.9434 to the dollar on Thursday, compared to 3.9575 a week ago.

“Buoyed by market liquidity and low demand (for dollars), the cedi is expected to remain relatively stable in the week ahead,” Joseph Biggles Amponsah of Accra-based Dortis Research, said.

The Ugandan shilling is expected to firm next week as commercial banks and other companies trim dollar demand and keep local currency to meet mid-month tax obligations.

At 0911 GMT commercial banks quoted the shilling at 3,368/3,378, weaker than last Thursday’s close of 3,364/3,374.

“Much of the activity in the coming days will be concentrated on the shilling side for tax payments,” a trader at Crane Bank, Shahzad Kamaluddin, said.

The Kenyan shilling is expected to trade in a tight range with dollar demand from manufacturers and importers broadly matched by foreign exchange inflows from horticulture exports and charities.

At 0852 GMT, commercial banks quoted the shilling at 101.45/55 to the dollar, compared with 101.35/45 at the close on Thursday last week.

“Clients are tending to be strategic … ordering but not executing, waiting for more market information and what they perceive to be favourable rates,” said a trader from a commercial bank.

Tanzania’s shilling is likely to firm next week, supported by foreign exchange inflows from tourism and agriculture exports, while demand for the dollar was expected to remain sluggish.

Commercial banks quoted the shilling at 2,180/2,190 to the dollar on Thursday, stronger than 2,183/2,193 a week ago.