The Nigerian naira eased against the U.S. dollar on the interbank on Wednesday after large dollar sales by state-owned energy firm NNPC and at a central bank currency auction, failed to quell demand for the greenback.

The unit closed at 161.10 naira to the dollar on the interbank after opening at 159.45 naira on Wednesday. It closed at 160.10 naira on Tuesday.

Traders said the energy firm NNPC sold about $400 million to some lenders on Tuesday to help support the currency but this was short-lived because of strong demand from importers.

“A number of banks took the advantage of the increase in dollar supply from NNPC and the appreciation to cover their position, pushing down the naira,” one dealer said.

At the auction, the central bank sold $300 million at 155.87 naira to the greenback, compared with $200 million it sold on Monday at the same value.

“The market is not expecting any significant dollar inflow in the coming days … which means that the naira will continue to depreciate in the week.”

Source: Reuters (Reporting by Oludare Mayowa; Editing by Chijioke Ohuocha)