Naira appreciates as Total, Agip sell dollars

The naira strengthened against the dollar at the inter-bank market today, Monday as Total and Agip sold dollars to some banks, which helped boost foreign exchange holdings in the inter bank market. The naira appreciated to N152.20 to one US dollar from N152.38 at which it closed on Friday’s. Bankers disclosed that two energy multinationals, France’s Total and Agip , a unit of Italy’s Eni, sold around $132 million. The central bank sold $400 million at N150 to the dollar at its bi-weekly foreign exchange auction, short of the $412.74 million demanded, but higher than the $250 million sold at N150.08 to the dollar at the previous auction on Wednesday.
Bankers attributed the increase in dollar demand at the official window to activities of petroleum products importers, but noted the willingness of the central bank to meet demand at its auction.
“The dollar inflows from the energy companies were sufficient to counter the shortfall at the official window, helping the naira to appreciate against the dollar,” bankers said. We are expecting that more oil majors will sell dollars this week and next as part of their month-end sales cycle, helping to boost liquidity and support for the naira,”. Most of the oil companies operating in Nigeria sell dollars to some bankers on a monthly basis to obtain naira for their local operations. Bankers said they expected the naira to appreciate further to around N151.60-152 to the dollar in the days ahead.