The naira has been steady against the dollar on the interbank market, following the sales of dollar by two major energy companies.
The local currency closed at N164.95 to the United States currency on Tuesday, the same level it closed on Friday.
According to Reuters, the Nigerian unit of ExxonMobil sold $50m, while Royal Dutch Shell sold an undisclosed amount on Monday, boosting dollar liquidity and helping to prop the local currency.
Traders said there was demand for the dollar from investors repatriating dividends, but the dollar sales by the oil companies provided support for the naira.
“We hope to continue to see stability in the market in the near term and a bit of appreciation early next week when Nigerian National Petroleum Corporation expects to sell dollars in the market,” one dealer said.
The local currency has sustained a stable outlook since last week when the Central Bank of Nigeria hiked the cash reserves requirement on private sector deposits at the end of its Monetary Policy Committee meeting.
Source: Punch
