13 September 2012

Nigeria: Naira Weakens On Importers' Demand

The naira eased against the dollar at the foreign exchange market yesterday as demand for the foreign currency by importers favoured the dollar.

Naira which sold for 157.95 to the dollar on Tuesday weakened against the U.S. dollar on the interbank market yesterday to 158.05.

Dollar sales by a unit of Shell which was expected to meet dollar demand at the market came after the market was shut and too late to make impact.

Dealers said Shell sold an undisclosed amount of dollars yesterday but it did not hit the market before it closed.

"We hope to see positive reaction to the dollar sale by Shell today in the market, provided the amount is significant,"one dealer said.

The naira has been hovering around 157-158 level in the last two weeks, owing to dollar sales by the state oil company, multinational oil firms and inflows from offshore investors buying local debt.

At the bi-weekly foreign exchange market, the central bank sold $200 million at 155.78 naira to the dollar, the same amount and price at the last auction on Monday.

Copyright © 2012 Leadership. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.