Naira appreciates, helped by energy companies’ demand
The Nigerian naira
strengthened to 150.30 to the dollar on the interbank market on
Wednesday, from 150.41 the previous day, due to weaker-than-expected
demand for the greenback at the official window, traders said.
The Central Bank of
Nigeria sold $190 million at 148.60 at its bi-weekly forex auction on
Wednesday, less than the $200 million offered and compared to $200
million sold at 148.67 on Monday. Dealers said weaker demand and the
inflow of an unspecified amount of dollars from the Nigerian Liquefied
Natural Gas (NLNG) company helped boost the naira. Oil companies
operating in Africa’s top energy-producing nation regularly sell
dollars toward the end of each month to meet their local funding
obligations. Traders said the naira could appreciate slightly before
the end of the week if more energy firms sell dollars as expected.
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