Nigeria Naira firms 0.39 pct on CBN dollar sales

 

Nigeria's currency closed up 0.39 percent to N164.90 kobo against the greenback after central bank intervened with an undisclosed amount of dollar sales to support it.

Dealers said the unit hovered around a 7-month intra-day low of 166 naira before central bank support, driven by strong demand for dollars amid a shortage and continued concerns over weak oil prices. It closed at 165.55 naira against the dollar on Tuesday.

Dealers said dollar demand was coming from local importers and companies worried about the risk of a devaluation that brought forward their hard currency orders.

There are concerns about the falling price of oil have led to panic selling in Nigeria, which relies on oil as its main source of foreign currency earnings. The naira has lost 3.9 percent so far this year and is trading below the central bank's target range of within 3 percent of 155 naira to the dollar.