The naira firmed further against the U.S dollar on the interbank market on Wednesday, closing at 157.04 to the dollar on the interbank, stronger than 157.15 at Tuesday's close.
Traders said the naira was boosted by dollar sales by some unit of foreign banks and U.S. oil major Chevron.
Chevron sold about $27 million to some lenders, while some units of foreign banks buying local debt for offshore investors sold ample amounts of dollars in the market, which buoyed liquidity and supported the naira.
The Nigeria’s currency has been supported by large dollar flows from energy companies selling dollars to meet month-end domestic obligations, and by offshore investors buying local debt in the past few weeks.
"We see the naira appreciating further in the near term as more companies wind down their operations for the year and demand for the dollar gradually decline," one dealer said.
On the official window, the central bank sold $80 million at 155.76 to the dollar compared $154.28 million sold on Monday at same rate.
Chevron sold about $27 million to some lenders, while some units of foreign banks buying local debt for offshore investors sold ample amounts of dollars in the market, which buoyed liquidity and supported the naira.
The Nigeria’s currency has been supported by large dollar flows from energy companies selling dollars to meet month-end domestic obligations, and by offshore investors buying local debt in the past few weeks.
"We see the naira appreciating further in the near term as more companies wind down their operations for the year and demand for the dollar gradually decline," one dealer said.
On the official window, the central bank sold $80 million at 155.76 to the dollar compared $154.28 million sold on Monday at same rate.
Source: Punch
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