Naira Gains 1.4% But Fuel Import Demand Looms

The Nigerian naira gained 1.4% this week, closing at ₦1,362.09 per dollar on Friday.

This gain is a notable resilience, according to analysts at Coronation Merchant Bank, who had forecasted a rate of ₦1,382 for the first half of the year.

The naira's performance was highlighted as it was the only gainer among five African markets in the latest snapshot. However, traders expect the currency to weaken by July 30 due to fuel-import dollar demand, which could reverse part of last week's gain.

Rights to a narrower parallel premium and lower interest income would provide confirmation for the rally. However, risks include higher oil prices lifting export receipts and fuel-import costs together, as well as softer portfolio inflows or reduced official support pressing the naira.