Naira firms on NNPC Dollar sales

The naira firmed against the U.S. dollar on Monday, buoyed by the sale of around $400 million by state-run energy firm NNPC to selected lenders on Friday, ...

traders said. The local currency closed at N151.80 to the dollar compared to N152.55 at Friday's close.

The central bank sold $300 million at N150 to the dollar, slightly below the $319 million demanded and compared to $310.38 million sold at N150.50 a dollar at last Wednesday's auction.

The Nigerian National Petroleum Corporation (NNPC) sold a first tranche of its monthly dollar floats to the central bank last week after the energy firm failed to reach agreement on pricing with the selected banks it had initially offered the dollars.

Traders said the energy firm sold the second tranche of its dollars to some lenders on Friday, helping to provide support for the naira at the interbank market.

The state energy company sells dollars to some banks on a monthly basis and transfers the naira proceeds to its account with the central bank.

"We see the naira trading around the same level for the rest of the week since the market is still very liquid and the central bank is willing to meet all demand at its auction," dealer said.