Naira gains on increased dollar sale

The naira firmed to N151.30 to the U.S. dollar on Wednesday from N151.60 at Tuesday's close after the Central Bank of Nigeria met all demand ...

at its foreign exchange auction, traders said.

The CBN sold all the $394.80 million demanded at N149.06 naira to the dollar. The regulator had sold $400 million at N149.29 at its previous auction on Monday, short of the $548 million demanded.

"The central bank has shown its willingness to defend the naira with the supply of $400 million at Monday and Wednesday's auctions, which has calmed the market," one dealer said.

Traders said Mobil Oil sold about $31 million to some lenders on Tuesday, while the local unit of Royal Dutch Shell sold an unspecified amount of dollars on Wednesday, boosting dollar supply and helping support the naira.

"We expect the naira to trade around this same level until the next forex auction on Monday because the central bank has taken out the backlog of demand, while more energy firms should be selling dollars in the days ahead," another dealer said.