Nigeria's currency market eyes MPC decision on naira

Trade on Nigeria's naira may be cautious ahead of a rate-setting meeting by the Monetary Policy Committee (MPC) next Tuesday, as traders expect the local currency to take its cue from the outcome of the MPC meeting.
Traders said the rate-fixing MPC meeting, the first this year, is expected to outline whether it favours devaluation of the local currency or not.
The naira weakened to its lowest last week after the central bank halt dollar sales to Bureaux de change operators.
The local currency has since stabilised at 300 to the dollar on the parallel market, while on the interbank market the naira currency has traded around the 197 pegged rate.
The central bank is expected to sell dollars on the interbank market on Thursday, having asked commercial lenders to deposit naira cash in advance payment on Tuesday.
International Monetary Fund chief Christine Lagarde told Nigerian lawmakers on Jan. 6, that the IMF does not support foreign exchange restrictions, a policy Abuja took after prices for its oil exports collapsed.