Hope rises for Naira over Eurobond issuance, rising reserves

Naira notes

Nigeria’s naira is expected to remain around its present range after it crossed the 500 per dollar mark early this week as investors look ahead of a $1 billion eurobond issue expected to boost support for the naira, traders said.

Traders said the naira was quoted at 500 to the dollar on the black market, a notch weaker than 498 a dollar last week, and quoted at 305.25 a dollar on the official interbank window, the same level it has closed since August last year.

“The naira is not likely to fall further in the near term on the black market because of possible resistance of buyers and confidence boosting provided by the rising forex reserves and planned Eurobond issuance,” one senior currency trader said.

Source: Reuters

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