NAIROBI, May 5 – The Nigerian naira is expected to strengthen in the coming week as oil companies sell dollars, while the Tanzanian shilling is expected to ease due to corporate demand, traders said.
NIGERIA
Expected large dollar sales by the Nigerian National Petroleum Corporation (NNPC) could help support the naira with the local currency expected to trade around 154 to the dollar, traders said.
State-owned NNPC is the largest dollar supplier to the interbank market and usually sells about $300-$500 million to some banks on a monthly cycle.
It has yet to sell dollars for April, but sales by other multinational energy firms on Wednesday provided support for the naira, which was trading at 154.80 early on Thursday compared to 154.97 per dollar at Wednesday’s close.
Source: Reuters Africa newsletter
Did you find this information helpful? If you did, consider donating.