By Agency reporter

Thursday, 20 Jan 2011

The naira eased on the interbank market on Wednesday and expected to trade flat to firmer as dollar demand slows in coming days, traders said.

The naira traded at 152.52 to the dollar, compared to 152.30 at Tuesday’s close, Reuters reported on Wednesday.

The Central bank of Nigeria sold $300m at N150.30 naira at its Wednesday auction, just shy of the $305m demanded. It sold $300m at N150.31 on Monday.

“We foresee the naira closing the week flat or firming a little because of a gradual reduction in (dollar) demand and anticipation of further inflows from some energy companies,” one dealer said.

Forex sales by companies including Chevron, Royal Dutch Shell and Nigerian Liquefied Natural Gas this week have already lent support to the naira, traders said.

Most energy firms in sub-Saharan Africa’s second biggest economy sell dollars each month-end to meet local obligations and this helps provides support for the naira.

Source: Punch