Nigerian naira weakens despite cbank dollar auction

LAGOS, Jan 6 (Reuters) - Nigeria's naira currency weakened against the dollar on the interbank market on Monday, amid growing importer demand for the greenback, even as the central bank re-opened its twice-weekly foreign exchange auction with an offer of $350 million.

The local currency closed at 159.40 to the dollar, compared with 158.75 to the dollar on Friday.

Traders said unit of Royal Dutch Shell sold an undisclosed amount of dollars to some lenders, but a surge in demand for hard currency from importers resuming after the New Year holiday drowned out its effect.

Nigeria's central bank shut its twice-weekly forex auction on Dec. 18, a normal practice toward the end of the year to enable the regulator to tidy up its books.

Traders said the naira should trade within the band of 158.80-159.60 to the dollar this week if more oil firms sell dollars.

"Depending on dollar inflows from oil companies, the naira will continue to trade somewhere within a band of 158.80-159.60 in the week," a dealer said.

(Reporting by Oludare Mayowa; Editing by Tim Cocks)

((oludare.mayowa@thomsonreuters.com)(+234 803 3964 138))

Keywords: NIGERIA NAIRA/