Dollar Supply by Energy Firms Fail To Lift Naira

Dollar supply by Royal Dutch Shell and the Nigerian Natural Liquified Gas (NNLG) failed to add value to the naira against the dollar at the inter-Bank market Monday.
   The naira closed at N159.95 to the dollar, the same level it closed at on Friday, traders said.
   Traders said the naira initially appreciated to around N159.35 to the dollar intraday, but there was a surge in demand for the greenback which weakened the naira back to Friday’s close. They said the dollar demand was from various sources.
   A unit of Royal Dutch Shell and Nigerian Natural Liquefied Gas (NLNG) company sold an undisclosed amount of dollars to some lenders, but the impact was muted by demand.
   “We see the naira trading within the present band of N159.8-N160.2 to the dollar this week on expectations of additional dollar flows from some oil companies,” one dealer said.
   Dealers said month-end dollar sales by energy companies operating in Africa’s top crude exporter could boost the local currency if they came in large enough volumes.

Leave a Reply

Your email address will not be published. Required fields are marked *