Nigerian naira heading to further fall on disappointing MPC decision

The Nigerian naira was seen falling back in the week ahead unless a major step is taken to inject liquidity, traders said.
On Tuesday, the central bank rejected calls to relax its forex rules, prompting the naira to weaken further to 306 on Thursday from 300 a dollar on Tuesday on the parallel market. The naira remains stable on the official interbank market around the 197 a dollar peg rate.
"The market was disappointed by the outcome of the MPC meeting. Coupled with the scarcity of dollars in the market, the naira is heading toward another sharp fall in the coming days," said the head of Nigeria's Bureau de Change association, Aminu Gwadabe.
Nigeria pegged its exchange rate at 197 to the dollar in February last year and halted dollar sales to Bureaux de change operators.