The Naira firmed against the U.S dollar on both the interbank market and official window on Wednesday, after a unit of France Total sold about $120 million to some lenders, boosting dollar liquidity.
Traders said the naira closed at 157.20 to the dollar at the interbank market, its highest level in a week and firmer than the 157.35 per dollar it had closed at on Tuesday.
“The sales of $120 million by Total Oil raised dollar liquidity level in the market and provided support for the naira,” one dealer said.
Nigeria’s currency has hovered around 157.10-157.90 in the past four weeks on large inflows of dollars from state-owned energy company NNPC and other units of multinational oil firms.
“Though we are within the month-end cycle, the market seems comfortable at the present level and we expect the naira to be more stable in the coming days,” another dealer said.
Traders said dollar inflows from offshore investors in treasury bills and bonds this week could boost support for the local currency, pushing it to within the 157 band.
At the CBN’s bi-weekly auction, the apex bank sold $110.50 million at 155.65 naira to the dollar, compared with $120 million sold at 155.75 naira to the dollar on Monday. (Reuters)
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