Naira could firm against the dollar on the parallel market next week after a peaceful election, but Kenya’s shilling could weaken after a deadly attack by Islamists which could further hit tourism, reports Reuters.
The naira firmed to 210 to the dollar on the parallel market from 226 a week ago after opposition leader Muhammadu Buhari won in a vote that avoided the violence of previous polls.
However, the currency traded within the 199-199.50 band on the official interbank market, where it has been stuck since February, after the Central Bank of Nigeria, CBN pegged the rate.
In a sign of relief, individuals who had stockpiled dollars to hedge against political risk fearing the election could be marred by violence were exchanging their funds for the naira.
“We are not going to see much of movement in the pricing of the naira at the interbank market until the CBN reviews the present measure which has stagnated the rate,” a dealer said.

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