Nigeria’s naira firmed against the U.S dollar on the interbank market on Monday, supported by dollar sales by two energy companies, which boosted greenback supplies.

The local currency strengthened to 157.30 to the dollar on the interbank market, firmer than the 157.40 it closed on Friday.

“The market liquidity was boosted by dollar sales by Shell and Nigerian Liquefied Natural Gas (NLNG) company, which provided support for the naira,” one dealer said.

Traders said the naira should remain stable around the present level as dollar inflows from month-end sales by energy companies and offshore investors buying treasury bills at an auction this week could balance out demand in the market.

On the bi-weekly auction, the central bank sold $150 million at 155.76, same amount and rate at the last auction.

Nigeria’s currency had weakened to around a three week low last week, pressured by demand for dollars from gasoline importers, but the local currency rallied on dollar inflows from oil companies and from offshore investors buying bonds.

Source: Reuters (Reporting by Oludare Mayowa; Editing by Joe Brock)