Naira ends broadly flat against the dollar

The naira closed broadly flat on Wednesday, recovering from early losses after news of dollar sales by state-owned energy firm NNPC to banks filtered into the market, dealers said.

The naira closed at 162.90 to the dollar, little changed from its close of N162.85 the previous day.

It hit a day’s low of 163.45 to the dollar on Wednesday before rebounding on the news that NNPC had sold around $200 million to lenders toward the close of trading at 1300 GMT.

“The market has been short in anticipation of dollar sales by NNPC,” one dealer said, adding that the amount was not enough to quench dollar demand in the market.

NNPC usually sells dollars to banks on a monthly basis and accounts for around 70 percent of total dollar volume traded on the interbank market.