Oil firm, NNPC dollar sales boost support for the naira

CBN Ag. Gov, Alade

Nigeria's naira currency strengthened by 0.61 percent against the dollar on the interbank market on Wednesday, supported by large dollar sales by state-owned energy company NNPC and flows from offshore investors into debt purchases.
The local unit closed at 162.90 to the dollar, the level last seen on Feb. 18 when it closed at 162.50 to the dollar. The naira closed at 163.90 to the dollar on Tuesday.
Traders said NNPC sold around $450 million to some lenders, while flows from offshore investors participating in treasury bill auction on Wednesday further boosted support for the naira.
"We have large volume of dollar flows into the market today both from NNPC and some offshore investors buying local debt, which provided support for the naira," one dealer said.
"This is a good level for some customers (importers) who may want to take advantage of the cheaper dollar to buy," another dealer said.
Traders said the naira should gradually inch back to the 164 level by Friday due to expected increase in demand from importers.