Home Finance Naira appreciate against dollar on oil firms forex sales

Naira appreciate against dollar on oil firms forex sales

by Business News Report

The naira strengthened against the U.S dollar on the inter-bank market on Wednesday as about $216 million sold by three energy companies to some banks provided support for the local currency. The naira currency closed at N162.20 to the dollar on the inter-bank market, up from N162.40 on Tuesday.
Bankers said though the central bank failed to meet all demand at its bi-weekly auction on Wednesday, dollar sales by Total, Agip and Royal Dutch Shell totaling about $216 million and direct sales by the regulator to some banks helped provided needed support in the market. On the official window, the central bank sold $200 million at N156.70 to the dollar, same figure and rate at the previous auction on Monday. The naira actually weakened to around N162.60 to the dollar intraday, but strengthened to N161.85 to the dollar after the inflows from the oil companies hit the market before closing at N162.20 due to strong demand.

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