Bloomberg News

Nigeria’s Naira Heads for Fourth Weekly Gain on Oil Dollar Sales

February 27, 2012

Feb. 24 (Bloomberg) -- Nigeria’s naira advanced for a third day, heading for a fourth weekly gain, supported by month-end oil company dollar sales to fund local operations.

The currency of Africa’s biggest oil producer climbed 0.4 percent to 156.4 per dollar as of 2:16 p.m. on the interbank market in Lagos, the commercial capital, according to data compiled by Bloomberg. The naira is up 0.7 percent on the dollar this week.

“The usual month-end supply from the oil companies has provided some level of support to naira demand in the market,” Sewa Wusa, a currency analyst at Lagos-based Sterling Capital, said by phone.

The Central Bank of Nigeria offers dollars at auctions on Mondays and Wednesdays and through interbank trading to maintain exchange-rate stability. The oil industry is the second major source of dollar supplies in the country.

“Dollar availability is much improved thanks to strong foreign exchange sales by the oil sector,” Gregory Kronsten and Olubunmi Asaolu, research analysts at FBN Capital Ltd. in London, wrote in an e-mailed note today.

Ghana’s cedi gained 0.4 percent to 1.7045 per dollar, as of 1:17 p.m. in Accra, the nation’s capital.

--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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