Bloomberg News

Nigeria Naira Gains for Fourth Day on Oil Industry Dollar Supply

February 05, 2012

Feb. 3 (Bloomberg) -- Nigeria’s naira advanced for a fourth day, heading for a weekly gain, on increased dollar supply from oil companies to fund operations.

The currency of Africa’s biggest oil producer climbed 0.1 percent to 160.35 per dollar on the interbank market as of 12:36 p.m. in Lagos, the commercial capital, compared with yesterday’s New York close. The naira is up 0.4 percent this week.

Oil company sales “increased supply of dollars” Jide Solanke, an analyst at First Securities Discount House Ltd., said by phone from Lagos today. “There is ample supply, more than demand at the moment.”

The West African nation isn’t under pressure to devalue the naira again after lowering its band against the dollar last year, Central Bank of Nigeria Governor Lamido Sanusi said Feb. 1. The bank kept its benchmark interest rate unchanged at a record high for a second consecutive meeting Jan. 31.

Ghana’s cedi was little changed at 1.6852 per dollar, heading for a weekly decline of 0.1 percent.

--Editors: Peter Branton, Linda Shen

To contact the reporter on this story: Chris Kay in Abuja at ckay5@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net


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