By Agency Reporter

Tuesday, 15 Feb 2011

The naira appreciated slightly against the dollar at the inter-bank market on Monday as the previous week’s foreign exchange sales by energy companies continued to provide support for the local currency.

The naira firmed to N152.47 to the dollar from N152.56 on Friday.

At the bi-weekly foreign exchange auction, the Central Bank of Nigeria sold $200m at N150.47 to the dollar, short of the $230m demanded.

The CBN had sold $200m at N150.40 per dollar at its previous auction last Wednesday.

Reuters quoted traders as saying, “Dollar inflows from energy companies last week had helped boost forex liquidity and thus support the naira. The market is quiet. We have enough dollars to back demand at the inter-bank.”

Chevron’s local unit sold $47m to selected lenders last week. The local unit of France’s Total sold $28m, while Royal Dutch Shell and the Nigeria Liquefied Natural Gas company sold an unspecified amount to banks.

Dealers expect the naira to remain flat until the next forex auction by CBN on Wednesday.

Source: Punch