Nigeria’s currency the naira is extending its phase of relative stability as a devaluation in January and other reforms help to reduce volatility and increase confidence.
“FX demand has slowed and onshore market participants seem more confident in the naira,” Samir Gadio, head of Africa strategy at Standard Chartered Bank in London said.
“There is limited front-loading of demand,” he said.
The naira has traded in a narrow range between 1,473 and 1485 per dollar this month, according to FMDQ data.
Africa’s most populous nation last month obtained $925 million from Afreximbank been the final tranche of crude oil-backed $3.3 billion prepayment facility intended to boost the supply of hard currency on the local foreign-exchange market.
The World Bank approved $2.25 billion funding to support Nigeria’s economic reforms this month which is expected to further boost foreign exchange liquidity.
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