The currency of Africa’s largest economy is expected to weaken as the signing of the 2016 budget by President Muhammadu Buhari next week means the system is flooded with liquidity.
The local currency was flat at 320 to the dollar on the parallel market, while at the official window the currency was,trading around the peg rate of 179 to the dollar.
Nigeria Africa’s largest economy is struggling with a 60 percent drop in price of oil to about $40 per barrel. Oil accounts for two thirds of government revenue and nearly all foreign exchange earnings.
Economic growth slowed to 2.80 percent, the lowest in a decade.
“There is presently a lull in the forex market because of the non release of the 2016 budget by the government, but we see transactions picking up as soon as the government reveal its economic direction through the budget next week,” one currency trader said.
The post above and its ensuing comments, if any, is purely the opinion of the writer(s). It therefore should never be considered as an investment advise of any sort. If required, readers should please consult a competent professional financial adviser for any investment decision.