LAGOS: Nigeria's naira firmed 1.5 percent during mid-day trade from its open, after two foreign oil companies sold the greenback to boost interbank market liquidity amid strong dollar demand, dealers said.
The unit, which opened at 178.25 naira against the dollar on Monday, firmed to 175.60 at 1237 GMT in volatile trade.
Dealers said French oil company Total and China's Addax sold an undisclosed amount of dollars to lenders, which helped prop up the naira.
Oil companies operating in Africa's top crude export, sell dollars every month to meet their local obligations.
Also the central bank sent a message to dealers to inquire about the level of demand in the market, increasing expectation that the bank would intervene on Monday, ahead of its decision on interest rates on Tuesday.
Comments
Comments are closed for this article.