Naira gains on dollar sales

By Agency Reporter

Thursday, 21 Oct 2010

The naira firmed against the United States dollar on Wednesday after two reports that energy firms sold hard currency to some lenders and the Central Bank of Nigeria met almost all demand at a currency auction.

The naira strengthened to 151.60 to the dollar from 152.50 on Tuesday.

At the CBN bi-weekly auction, according to Reuters on Wednesday, the regulator sold $250m at 149.96 to the dollar, only just below the $253.7m demanded and down from the $297.24m sold at 149.95 on Monday.

Traders said the Nigerian Liquified Natural Gas company and the local unit of Chevron sold a total of $28.3m to some lenders on Tuesday and Wednesday, helping to raise liquidity and provide support for the naira.

”We see the naira fluctuating between the 151 and 152 band for the rest of the week, but could swing toward 151 a dollar if more oil majors sell dollars,” one dealer said.


Source: Punch


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