NAIRA WITH UNNOTICEABLE STABILITY.

Measuring by the oil companies range, the naira is likely to be steady next week, while the East African currencies are expected to be supported by central bank interventions, Reuters has reported.

There is the possibility that naira is going to trade around its present levels next week on the back of expected month-end dollar sales by some energy companies and intervention by the central bank.

The local currency being volatile in the wake of falling oil price and the exit of offshore investors in local debt and equity last year made it more mind bugling.

The naira was trading around 189.90 to the dollar on Thursday, same level it closed a week ago. The naira was however weaker than its Wednesday’s close of 186 after dollar sales from the Nigerian National Petroleum Corporation buoyed the currency.

The NNPC sold around $350m to some lenders on Wednesday, while the local unit of Royal Dutch Shell sold undisclosed dollar amounts on Thursday, keeping the naira stable.

Most oil companies in the country sell dollars to obtain naira currency for their domestic obligations.

“We expect that the local currency will derive further support from the usual month-end oil companies’ dollar sale in the coming days,” Citibank said in a research note on Thursday. The question now is, how can we devalue the naira? The hike is still not encouraging. The level of exchange is so high that average Nigerian is crying and, it should not be an issue when the naira had unnoticeable affluence like this because, it is negligible.