The naira is expected to drop further against the United States dollar at the parallel market in the coming days as the Central Bank of Nigeria moves to release details of its new flexible exchange rate policy.
The local currency was quoted at 368 to the dollar on the black market on Friday, compared with 350 last week.
The Group Managing Director, United Bank for Africa, Philips Oduoza, had said on Thursday that details of the proposed flexible currency model would be ready in a “short while”, after a Bankers Committee’s meeting in Abuja.
The announcement halted the free fall of the naira, while many traders expected that the announcement of the detail would spur the alignment of the parallel market rate and the official window, Reuters reported.
Major African currencies are also expected to come under pressure next week due to low foreign exchange supplies and lingering concerns about global economic growth, traders said.