Nigerian naira hits 5-wk high on oil firm dollar sales

Nigeria's naira firmed to its strongest in 5-weeks against the dollar on the interbank market, supported by dollar sales by two major energy companies, traders said on Friday.

Nigeria currency

   The local currency closed at 161.17 to the dollar, its strongest since Aug. 15, when it closed at 161.15 to the dollar. The naira ended at 161.30 to the dollar the previous day.
   Traders said French oil firm Total <TOTF.PA> sold about $91 million to some lenders, while the local unit of Royal Dutch Shell <RDSa.L> sold an unspecified amount of dollars.
   The naira has been under pressure in the past two months, as offshore investors have sold equities and repatriated their dollars, while forex sales by oil companies have been limited.
   The decision by the U.S. Federal Reserve on Wednesday to postpone tapering its stimulus programme that has pumped easy money into emerging markets also supported the local currency, this week, dealers said.
   Local units of some foreign banks trimmed down their dollar positions on expectations of renewed interest in the local debt market by offshore investors, traders said.
   "We see the naira appreciating further next week as more dollars are expected to come in from oil companies and offshore investors participating at the treasury bills auction next week," one dealer said.
   Nigeria plans to issue 124.69 billion in treasury bills with maturities of between three months and one year next week.