Naira trades flat against U.S. dol­lar

Daily Trust - - REUTERS -

Nige­rian naira traded flat against the U.S. dol­lar on Mon­day as lenders sold dol­lars on the in­ter­bank mar­ket to im­prove liq­uid­ity, shor­ing up the weak­en­ing lo­cal cur­rency, deal­ers said.

The

naira

had

ini­tially weak­ened to 161.30 in mid-day trade be­fore some lenders started to sell the green­back on be­half of off­shore clients par­tic­i­pat­ing the bond mar­ket. In ad­di­tion, the lo­cal unit of Ad­dax sold $10 mil­lion.

The move helped the naira re­cover to close flat at 161.05 naira, com­pared with Fri­day’s close of 161 naira.

“We don’t ex­pect any ma­jor move in the naira this week as de­mand slows and off­shore dol­lar flows into the mar­ket,” one dealer said, not­ing that the unit could trade around 160-161.50 naira through­out the week.

The naira has hov­ered around 160.90-161 over the past week with re­newed in­ter­est from off­shore in­vestors in Nigeria’s debt. Also, the state-owned en­ergy firm NNPC sold large amounts of dol­lars to in­crease liq­uid­ity.

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