Naira rises against dollar to N162.87

Channels Television  
Updated June 25, 2012

The Naira traded flat against the U.S. dollar at the interbank market on Monday as oil firms’ greenback sales boosted liquidity in the market.

The Naira recovered to N162.87 against the dollar at 1244 GMT on Monday, after it touched N163.20 in early trade. It closed at N162.82 to the dollar on Friday.

Dealers said liquidity from last week’s dollar sales by oil firms, including the Nigerian National Petroleum Corporation (NNPC), of around $500 million was currently in market, which was helping support the Naira.

At the auction, the Central Bank of Nigerian sold $350 million at N155.91 to the dollar, compared with $350 million it auctioned last Wednesday at N155.90.

“The market is pretty liquid this week, but rates may gradually trend back upwards if the liquidity dries up,” one dealer told Reuters.