By Agency reporter
Tuesday, 2 Nov 2010
The Central Bank of Nigeria intervened with an offer of $250m for sale at the foreign exchange auction on Monday.
Reuters news reported that the naira gained against the dollar at the interbank market on Monday, lifted by anticipated forex sales by energy firms and weak dollar demand at the CBN’s forex auction, traders said.
The local currency strengthened to close at N150.18 to the dollar at the interbank market on Monday from Friday‘s close of N150.90.
The CBN met all $209m of demand at its bi-weekly auction at N148.50 to the dollar. It had initially offered $250m for sale.
Traders said fuel retailer, MRS, formerly Chevron Nigeria, had sold about $5m while the local unit of Royal Dutch Shell and state-run energy firm NNPC, were also expected to make dollar sales.
â€ÂÂThe market reacted to the news of the planned sale of dollars by both Shell and NNPC, with the naira gaining at the interbank market,†one dealer said.
Dealers said weak demand at the CBN auction coupled with the planned sales of more dollars by the energy firms could further boost the naira during the week.
Source: Punch
