The Nigerian naira rose to 151.40 to the U.S dollar on Wednesday from 151.90 on Tuesday after some energy companies sold dollars to banks, traders said.
They said state-oil firm NNPC sold about $300 million, while the local unit of France’s Total sold $53 million and the Nigerian Liquified Natural Gas Company offloaded an unspecified amount, buoying dollar liquidity in the market.
The result of the central bank’s bi-weekly foreign exchange auction on Wednesday also showed the naira firmed against the greenback after the regulator sold all of the $243.13 million demanded at 148.60 naira a dollar.
The central bank had sold $279 million at 148.65 naira per dollar at Monday’s auction.
“We see the naira appreciating further in the week because of the increase in month-end dollar inflows from energy firms, but not below the 151 naira level,” one dealer said.
More energy firms are expected to sell dollars as part of their month-end activities to funds their naira obligations.