The Nigerian currency, the Naira fell against the U.S Dollars on Tuesday, May 27, 2014 as the dollar sales by two oil companies assisted to ease the pressure of demand for the greenback. The naira closed at N162.72 to dollar.
The Nigerian units of Chevron sold $43mn to lenders and Royal Dutch Shell sold an undisclosed amount, boosting dollar liquidity in the interbank forex market.
One of the dealers disclosed that as more oil companies sold more of their month-end dollars, they expected the naira to trade within the present level or a higher level since it was expected that this would support the naira but this did not happen as they expected.
The naira had been hanging between N161-N162 over the last two weeks, as oil companies bought naira to meet local obligations and as foreign investors bought domestic debt.
Traders disclosed that before the oil companies sold their dollars, the naira traded calmly and this assisted in the stability in demand for the greenback.