LAGOS: Nigeria's naira currency firmed to its highest in more than two weeks against the U.S dollar on the interbank market on Monday, supported by dollar sales by two energy companies, traders said.
The naira closed at 157.95 to the dollar on the interbank market, a level last seen on April 12. It had closed at 158.70 to the dollar on Friday.
Dealers said a unit of ExxonMobil sold about $62.7 million, while Royal Dutch shell sold an undisclosed amount to some lenders, boosting dollar liquidity.
The local currency had fallen to 159.02 last Thursday, its lowest in more than eight months against the dollar, on the back of strong demand by fuel importers and foreign investors repatriating their dividends back home.
On the official window on Monday, the central bank sold $300 million at 155.75 to the dollar, compared with $272.25 million sold at the same rate at the previous auction last Wednesday.
"We see the naira appreciating further this week because of an expected increase in dollar flows from oil companies selling the greenback to meet domestic obligations," one dealer said.
Energy companies in Africa's top crude exporter sell dollars on a monthly cycle to meet their domestic obligations, which usually provides some support for the local currency.
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