By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-The Nigerian naira on Monday firmed 1.13 percent compared to the U.S. dollar on the interbank market in a thin trade; supported by the greenback flows from two (2) oil companies, a Reuters report quoted dealers.

The report says Nigeria’s local currency closed at 199.7 to the dollar compared with 202 on the interbank market on Friday, quoting dealers.

The Central Bank of Nigeria (CBN) on Monday in an e-mail notice to InvestAdvocate said the naira closed 197.80 against the dollar.

According to the Reuters report, the CBN had set its intervention rate at 196.8/197.8 to the dollar on Monday, but dealers said the regulator had not yet sold dollars to lenders by 1302 GMT.

It disclosed that Shell Nigeria sold an undisclosed amount of dollars while Eni sold $15 million, lending support to the naira, quoting traders.

The report noted that the naira suffered its biggest monthly fall in over five (5) years in February on concerns over political uncertainty and the CBN’s ability to manage a currency affected by weak oil prices.

“There was not much of activity in the market today, apart from dollar sales by the two oil companies which boosted liquidity a bit and supported the naira,” the Reuters report quoted a trader.

It added that traders expect the naira would be driven by availability of dollar inflows through anticipated month-end sales by oil companies during the week.