Nigerian naira seen stable on MPC decision, new CBN governor's statement

Naira and dollars

Nigeria's naira is expected to trade within a narrow band next week after the central bank tightened liquidity.
The naira was stable at 164.90 to the dollar on Thursday in thin trade, unchanged from the previous day's close.
Traders said a unit of oil company Chevron sold about $55 million to some lenders on Thursday, boosting liquidity in the market.
The central bank kept interest rates on hold for the 15th time in a row on Tuesday but hiked its cash reserves requirement on private sector deposits by 300 basis points to 15 percent.
On Wednesday, Godwin Emefiele was confirmed central bank governor designate by parliament and he said he would sustain support for the naira, according to local media. Traders said this would calm the market and reduce pressure on the local currency.
"We expect stability in the market around the present band of 164.60-165 to the dollar, as we digest both the monetary policy decision and the pronouncement of the central bank governor designate," one dealer said.
Month-end dollar sales by oil companies could also provide support for the naira around the present band