1st June, 2017
The Nigerian naira is expected to be stable in the coming week while the Zambian kwacha could come under pressure.
The Nigerian naira is seen stable across the board in the near term on increased dollar supply to both the official interbank window and the black market.
It has been trading around 382 to the dollar on the black market in the last two weeks, while at the interbank market the naira was trading at around 305.40 per dollar.
The central bank has been intervening on the official market to try to narrow the spread between the official interbank and black markets. It has sold over $4 billion since February, improving dollar supply and providing support for the naira.
The Zambian kwacha is likely to come under pressure in the coming week due to increasing demand for dollars from importers at the start of the new month.
At 0740 GMT on Thursday, commercial banks quoted the currency at 9.2500 per dollar, stronger than 9.3300 a week ago, Reuters reports.
“Dollar supply continues to wane while demand persists. Higher levels will attract exporters to provide resistance,” one senior commercial bank trader said.