After a string of depreciation of the naira, the tables turned yesterday on the back of additional foreign exchange (forex) supply by Chevron and Addax Petroleum, upping the value of the naira at both the official markets and the inter-bank market.
The naira closed at N161.15 to the dollar on the interbank compared to N161.17 a dollar on Tuesday.
“Demand and supply were evenly distributed as two oil companies Chevron and Addax sold about $38 million to some banks,” one dealer said.
At the bi-weekly forex window, the central bank sold $250 million at N156.70 to the dollar, firmer than the N156.85 to the dollar at the previous auction of the same amount. The central bank did not provide information on the level of demand at the auction.
Dealers said the outlook for the naira will depend on the volume of dollar inflows from oil companies in the coming days.
“We heard that the (state-owned energy company) NNPC will be selling dollars this week, this would boost liquidity in the market and provide support for the naira, otherwise, the naira will trend higher,” another dealer told Reuters.