Naira to Strengthen Against US Dollar Next Week

The Nigerian naira is projected to maintain its bullish trend against the US dollar in the upcoming week, driven by robust foreign exchange inflow and central bank dollar sales. As of Thursday, the official exchange rate stood at 1,344 naira per dollar, a decrease from 1,357 naira the week prior.

The naira's strength is attributed to the activities of Bureau de Change (BDC) operators, which have contributed to tightening the spread between the official and parallel market exchange rates. On the street, the naira traded at 1,385 per dollar.

Analysts expect this positive trend to continue, bolstered by improved foreign exchange inflows and BDC dollar sales, which are anticipated to further reduce the premium in the parallel market. This trend is contrasted with other African currencies, such as the Kenyan shilling and Ghanaian cedi, which are expected to remain stable amid varying demand for dollars.