Naira gains marginally on dollar sales by oil firms

The naira firmed by 1.13 per cent against the dollar on the interbank market in thin trade on Monday, supported by dollar flows from two energy companies, traders said.

FMDQ data showed that the naira closed at N197.80 to the dollar, representing a 20 kobo appreciation, compared with the N198 to a dollar it closed last Friday on the interbank market.

But Reuters disclosed that Shell Petroleum sold an undisclosed amount of dollars while Eni sold $15 million, lending support to the naira.

The currency of Africa’s top crude exporter suffered its biggest monthly fall in over five years in February on concerns over political uncertainty and the central bank’s ability to manage a currency hammered 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,” said a trader.

Traders expect the local currency would be driven by availability of dollar inflows through anticipated month-end sales by oil companies during the week.

[ThisDay]

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