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Naira hits 1-month high against dollar

The naira hit a 1-month high against the U.S dollar on the interbank market on Wednesday, supported by dollar flows from two multinational oil firms … Continue reading Naira hits 1-month high against dollar


The naira hit a 1-month high against the U.S dollar on the interbank market on Wednesday, supported by dollar flows from two multinational oil firms and offshore investors in local debt, traders said.

The naira closed at N157.45 to the dollar on the interbank, compared with the N157.70 it closed at on Tuesday. The naira last traded at N157.90 to the dollar on August 27.

Dealers said dollar liquidity was boosted by the sales of $66.6 million by ExxonMobil and Addax combined on Tuesday, and two lenders selling portions of their dollar holdings to stay within their open limit positions.

Nigeria plans to issue N104.70 billion from treasury bills ranging from 3-month to 1-year maturities at its regular bi-monthly debt auction on Sept. 27.

More offshore investors are looking toward Nigeria’s debt, owing to its anticipated inclusion in the JP Morgan index from October, but also because of slightly declining inflation and relatively stable currency.

“The naira should continue to trade within the present band of 157-158 naira to the dollar in the near term, on the back of oil companies’ month-end dollar sales,” one dealer said.

On the bi-weekly auction, the Central Bank of Nigeria sold $200 million, compared with $250 million it sold on Tuesday, retaining the same rate of N155.78 to the dollar.