By Yemisi Izuora-Lagos
The Naira firmed against the dollar on the interbank market on Monday, supported by dollar sales by two energy companies and a naira cash shortage in the banking system, traders said, adding that they expected further gains this week.
The local currency closed at 178.70 to the dollar, 0.66 percent firmer than 179.90 it closed at Friday.
A unit of French oil company Total sold $74 million to some lenders, while Nigerian Liquefied natural Gas (NLNG) company sold an undisclosed amount, boosting dollar liquidity.
“The market was a bit calmer today because of dollar sales by the two energy companies and the impact of tight naira cash in the system,” according to Reuters which quoted an un-named trader said.
“Given the way the central bank has been active in the interbank market in the past few weeks sentiment is in favour of further gains in the naira,” another trade said.
The naira has been under pressure on concerns over falling global oil prices and depleting forex reserves, forcing the central bank to devalue last month.
The local currency has lost about 12 percent since January this year.