Nigeria'a naira falls on black market, interbank rate stable

Nigeria's currency fell on the parallel market against the U.S. dollar on Friday while the overnight lending rate closed at 9.5 percent, traders said.
The naira fell to 493 to the dollar on the black market compared with 490 per dollar previously. Traders cited a chronic dollar shortage as Nigeria struggles with dwindling oil revenues.
At the official interbank window, the naira closed at 305 to the dollar, where the central bank has held the currency since August through daily interventions.
The stock index rose 0.15 percent to 26,251 points on Friday, lifted by gains in banking and petroleum sector.
First City Monument Bank group led gains with a 4.46 percent rise, followed by energy firm Oando, up 3.3 percent. Access Bank gained 2.28 percent and First Bank Holding company was up 1.74 percent.
The naira lost around a third of its official value against the dollar in 2016. The stock market declined 6.17 percent over the same period
Traders expect the cost of borrowing among commercial lenders to remain stable in the coming days, since the banking system is liquid enough to support transactions.
"The rate on overnight borrowing should continue to trade below double-digit figures in the near term as the central bank remains less bullish in mopping-up excess liquidity from the system," one currency trader said.
© Reuters News