Naira hits 3-mth high as oil firms sell dlrs


THURSDAY, 01 JULY 2010 01:24


The Nigerian naira NGN=D1 rose to 150.05 to the U.S dollar on Wednesday, its highest level in three months, after some energy firms sold about $192 million at the interbank this week, traders said.


“There have been some dollar inflows from energy majors’ month-end sales since last week, which has increased liquidity in the system and provided support for the naira,” one dealer said. Dealers said Chevron and Total sold $78 million and $22.50 million respectively on Tuesday, while Mobil was expected to sell about $92 million on Wednesday. Some oil companies, including state-run NNPC, had sold a total of $410 million last week, helping the naira to appreciate rapidly.


The currency also firmed at the official window after the central bank sold $250 million at 148.50 per dollar compared to the peak demand of $262.64 million, and to the $250 million it sold at 148.55 a dollar on Monday.


Traders said other energy firms expected to sell the greenback this week were waiting for the naira to appreciate further before they come to the market.






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