Naira remains stable at parallel market

By Odunewu Segun

The Nigerian naira is seen stable around the prevailing level in the coming days as the Central Bank of Nigeria continues to open up the foreign exchange market and pump in more dollar liquidity to support the local currency.

The local currency was quoted at 391 to the dollar on the black market on Thursday, compared with 388 last week, while it traded at 306.25 on the official interbank market against 305.90 a dollar last week.

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Traders said the central bank’s resolve to improve liquidity in the forex market has continued to have a positive impact and improved foreign investor confidence in the forex market of Africa’s biggest economy.

The Central Bank of Nigeria has been intervening on the official market to try to narrow the spread between the two markets since intervention began in February and has sold about $4 billion, analysts said, a pace they doubt it can sustain.