Naira Appreciates Highest In 7 Weeks

The Naira strengthened against the dollar, heading for the highest in more than seven weeks, as investors prepared for an inflow of the dollar yesterday. The naira closed at N155.69 and N155.80 to the dollar at the official and inter-bank market respectively.

The naira appreciated 0.2 per cent to N157.20 per dollar on the interbank market in Lagos, the commercial capital, it’s strongest since February 23, according to data compiled by Bloomberg.

The Central Bank of Nigeria (CBN) sold $150 million at the Wholesale Dutch Auction System (WDAS) foreign currency at an auction yesterday and tomorrow would be the major supplier of foreign exchange, followed by oil companies, which sell dollars to meet local spending needs. The bank held only one auction last week as April 9 was a public holiday.

The central bank offered and sold $150 million at the official market.It also sold $150 million at the only auction last week after the public holiday.

Nigeria sold N183.7 billion ($1.2 billion) of Treasury bills on April 11 and N80 billion of bills at its open- market operations, the central bank said.

“The naira remains well supported, owing to consistent dollar inflows coupled with regular offerings by major oil firms on the interbank market,” Celeste Fauconnier and Nema Ramkhelawan-Bhana, Africa strategists at Rand Merchant Bank in Johannesburg, wrote.

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