Naira firms slightly on Mobil dollar sales

The naira strengthened slightly against the U.S dollar on the inter-bank market on Wednesday, supported by dollar sales by a unit of ExxonMobil and some offshore investors buying local debt. The naira closed at N157.30 to the dollar on the inter-bank market, firmer than the 157.35 to the dollar it closed at the previous day. Traders said Mobil Nigeria, a unit of ExxonMobil, sold $58.3 million to some lenders, while flows from offshore investors buying Treasury bills also provided support for the naira.
“Demand for dollars remained strong in the market, but dollar flows have continued to help reduce the pressure,” one dealer said. Dealers said many importers had taken advantage of cheaper dollar prices to bring forward their foreign exchange obligations, which would curb any further rises in the local unit from more dollar sales going foward. We see the naira maintaining the present level next week because of the expected month-end dollar sales by some oil companies,” another dealer said. Nigeria financial markets close untill Monday because of a two day public holiday to celebrate Muslim Mulud festival.