Nigeria’s naira traded flat against the U.S. dollar on the interbank on Wednesday as expectations of dollar inflows from energy companies and offshore investors buying local debt provided forex liquidity, dealers said.

The naira closed at 157.10 to the dollar, the same level it closed on Tuesday.

Dealers said the naira initially weakened to 157.30 intraday but firmed after dollar sales by the local unit of Addax petroleum and some lenders selling hard currency to keep within the stipulated central bank open limit position for banks.

“We saw growing demand in the market initially because of cheaper rate at the interbank, which saw the naira testing 157.25/157.30 level, but later closed firmer as some banks sold down their positions,” one dealer said.

Traders said the naira is seen trading within the present band for the rest of the week because of anticipated dollar inflows from offshore investors buying local debt and from state-owned energy company NNPC.

The central bank sold $50 million at 155.74 to the dollar at its twice weekly auction on Wednesday, compared with $43.5 million sold at 155.76 to the dollar on Monday.

Traders said more importers now preferred to buy dollars at the interbank market because it was cheaper than the effective rate at the central bank window because the central bank charges one percent commission on every dollar sold at its auction.

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