Nigerian naira gains on oil firms' dollar sales

Nigeria's naira  firmed against the dollar on the interbank market on Wednesday, supported by energy companies selling dollars and an increase in greenback supply from the central bank.

Naira and dollar in exchange

The local unit closed at 158.8 to the dollar, firmer than the 159.4 it closed at the previous day.
Traders said the local unit of Chevron sold $18.9 million to some lenders, Eni sold $5 million, while Shell sold an undisclosed amount to banks.
The naira has been well supported since the start of last week by higher than expected volumes of dollars sold by energy companies and central bank measures to limit dollar cash sales by banks to bureau de change.
Most oil companies operating in Africa's top crude oil exporter sell dollars on monthly cycle to obtain naira to fund their domestic obligations.
The central bank offered $400 million at its Retail Dutch Auction System on Wednesday, more than the $300 million it had sold since the reintroduction of the retail auction earlier this month.
"We see the naira trading within the present range in the near term and it could edge lower towards the 159 level by Friday as some importers could take advantage of cheap dollars," one dealer said.