Naira flat on Official and Black Markets

Nigeria's naira traded flat at the official interbank window and on the parallel market on the first trading day of the year, Reuters reports.

The naira closed at 305 a dollar on the official window, the same rate it closed at on the last working day of 2016. The currency initially traded at 315.50 to the dollar but gained after the central bank sold $1.5 million in the market.

On the parallel market, the naira was trading at 490 to the dollar at 1425 GMT, its closing level last year.

"In the week ahead, we expect pressure on the naira to linger, especially at the parallel market, as unmet demand from the official market continues to stoke imbalances," United Capital said in a research note to clients on Tuesday.

The naira lost around a third of its official value against the dollar in 2016 while the stock market declined 6.17 percent over the same period, reflecting a slump in Africa's largest economy.

myfinancialintelligence.com