The naira strengthened against the United States Dollar on the interbank market yesterday after the Nigerian National Petroleum Corporation (NNPC) sold about $150 million to some lenders, boosting dollar liquidity in the market.
The result was that the naira appreciated by about 0.5 per cent and closed at N160.30 to the dollar, after it opened the day at N161.10. The market closed at N161.15 to the dollar on Wednesday.
“The market dollar liquidity was increased by the sales of about $150 million by the NNPC and $50 million by a unit of (Exxon) Mobil, providing support for the naira,” one dealer said.
Sustained dollar sales by some energy multinationals, including the NNPC has boosted dollar supply at the interbank and helped strengthen the value of the local currency in recent weeks.
Traders said the effect of the large dollar inflows into the market will continue to ensure that the naira trades around N160-N160.80 in the coming days.