Naira falls on NNPC dollar sales

The naira closed marginally lower on Thursday, inching down in late trade as importers bought dollars to meet year-end obligations.The local currency closed at N163.10 to the dollar compared to N163.05 on Wednesday, traders said.Reuters quoted dealers as saying, "We still have some demand from companies trying to balance their dollar accounts for the year, but increased (dollar) inflows also helped to check the decline of the naira."Traders said state-owned energy company Nigerian National Petroleum Corporation sold about $350m on Thursday, its second such transaction this month, and dollar inflows from some foreign investors also helped to provide liquidity.Another dealer was quoted as saying, "Demand (for dollars) should slow down in the near term and the naira hold steady until the reopening of the official window next week when a new direction for the currency could be established."The Central Bank of Nigeria is expected to reopen the official bi-weekly foreign exchange market on January 4, having closed it for the year on December 21.At its last auction for the year, the CBN sold $200m at N156.70 to the dollar, a sum and rate it had maintained through the month.The naira fell against the dollar on last Wednesday, to its weakest since October 10, as the CBN closed its official foreign exchange window for the year, putting pressure on the inter-bank market dollar supplies.
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