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Nigerian naira firms vs dlr on oil firm, offshore flows

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(Globalpost/GlobalPost)

LAGOS, Jan 28 (Reuters) - Nigeria's naira strengthened against the U.S dollar on the interbank market on Monday, supported by dollar sales by a unit of Addax Petroleum and some offshore investors buying local debt, traders said.

The naira closed at 157.15 to the dollar on the interbank, firmer than the 157.30 it closed at on Friday.

Dealers said Addax, part of China's Sinopec Group, sold about $11.5 million to some lenders, while flows from offshore investors buying treasury bills buoyed dollar liquidity.

The naira however remain unchanged at the twice-weekly auction, as central bank sold $150 million at 155.73 to the dollar, the same amount and rate at the previous auction on Wednesday.

"We see the naira strengthening further around the 157 to the dollar mark this week because of anticipated dollar flows from oil companies selling dollars to meet domestic obligations," one dealer said.

Many oil multinational operating in Africa's top energy producer sell dollars to lenders on a monthly cycle to obtain naira for domestic needs. (Reporting by Oludare Mayowa; Editing by Tim Cocks)

http://www.globalpost.com/dispatch/news/thomson-reuters/130128/nigerian-naira-firms-vs-dlr-oil-firm-offshore-flows