Nigerian naira firms on NNPC dollar sales to banks
Thursday February 2, 2012
The Nigerian naira strengthened against the U.S dollar on the interbank market on Thursday after state-owned energy company NNPC sold about $150 million to some lenders, boosting dollar liquidity in the market.
The naira closed at 160.30 to the dollar, after it opened the day at 161.10. The market closed at 161.15 to the dollar on Wednesday.
"The market dollar liquidity was increased by the sales of about $150 milion by the NNPC and $50 million by unit of (Exxon) Mobil, providing support for the naira," one dealer said.
Sustained dollar sales by some energy multinationals, including the NNPC has boosted dollar supply at the interbank and help strengthened the value of the local currency in recent weeks.
Traders said the effect of the large dollar inflows into the market will continue to ensure that the naira trades around 160-160.80 in the coming days.