The Nigerian Naira firmed against the Dollar on the inter-bank market yesterday, gaining 0.48 percent, after state-owned energy company, Nigerian National Petroleum Corporation (NNPC), sold an undisclosed amount of U.S. currency to lenders.
The Naira closed at N163.85 to the Dollar, compared with N164.65 at Friday’s close. The Naira has been slipping since last month, weakened by falling global oil prices and low inflows of hard currency into Nigeria’s debt and equity markets. Traders said the NNPC’s Dollar sales brought a temporary relief to the market, but the Naira is seen depreciating again, to the N164 to the Dollar level, before Friday on persistent demand from mainly offshore investors selling down their bonds and equity holdings.