Wednesday, 10 April 2013

NIGERIAN NAIRA HITS ALL TIME HIGH AGAINST THE DOLLAR IN MORE THAN SIX WEEKS!


According to Reuters:
The Nigerian naira hit its strongest level in more than six weeks against the U.S dollar on the interbank market on Wednesday.
Traders said the naira was supported by dollar flows from offshore investors in local debt and sales by two energy companies,
The naira closed at 157.35 to the dollar, compared with 157.75 at Tuesday's close. The naira has not been this strong since Feb. 20 when it closed at 157.38 to the dollar.
Traders said some units of foreign banks sold dollars to enable them to buy local debt at a Treasury bill auction on Wednesday.
Nigeria auctioned 183.65 billion naira worth of treasury bills with maturities ranging from three months to one year at its twice-monthly auction on Wednesday. The result is expected on Thursday.
 
Traders said units of China's Addax Petroleum sold $10 million and Italy's Eni $2 million, which further buoyed supply and provided support for the naira.
At the official foreign exchange window, the central bank sold $300 million at 155.75 naira to the dollar, compared with $300 million sold at 155.74 to the dollar at the last auction on Monday.
"We see the naira trading within the 157.30-157.60 band for the rest of the week because of the prevailing dollar liquidity in the market," one dealer said.
(Reporting by Oludare Mayowa; editing by Stephen Nisbet)

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