Weak Demand for Dollars, Supply by Chevron Strengthens Naira to 4-Month High 

The naira strengthened to its strongest in four months against the U.S dollar on the interbank market today, boosted by dollar sales by an energy company and weak demand for the dollar. 
The naira was trading at N158.88 to the dollar, a level last seen on January 2 when the local currency closed at N158.70 to the dollar. 
The local unit closed at N159.80 to the dollar on Friday.
Traders cited the sale by a unit of Chevron of about $74 million to some local banks on Monday, while expectations that state-owned energy company NNPC will sell dollars this week provided further support for the local unit.
“The naira gained because demand for the dollar is very weak, while the expectations that NNPC is seen selling dollar any moment from now, further boosted support for the naira,” one dealer said.
Source: Reuters

Leave a Reply

Your email address will not be published.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