The naira is set to witness another round of decline against the dollar in the days ahead as an increase in dollar flows from Nigerians living abroad coming home for holidays fell short of expectations, traders said.
Foreign exchange reserves last Friday also fell 11.7 per cent to $25.72 billion by December 28, from $29.13 billion a year earlier, data mined from the Central Bank of Nigeria (CBN) shows.
The local currency was quoted at 490 to the dollar on Thursday from 495 against the dollar last week on the parallel market.
In the official interbank window, the naira was quoted at 310.25 to the dollar on Thursday, but it was expected to close at around 305.5, the same level it has traded at since August.
“We see the naira depreciating against the dollar by the time more businesses resume operations next week after the festive season as dollar liquidity remains thin in the market,” one currency dealer said.
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