Bloomberg News

Nigeria’s Naira Heads for Best Month in Six on Dollar Inflows

August 31, 2012

The naira headed for its best monthly performance in six after dollar inflows from the central bank and oil companies.

The currency of Africa’s biggest oil producer climbed less than 0.1 percent to 157.95 per dollar as of 12:55 p.m. in Lagos, the commercial capital. The naira has climbed 1.7 percent this month, the third-best performer in Africa according to data compiled by Bloomberg.

The naira has been “steady” on “dollar inflows from the central bank, and to a lesser extent, dollar sales by energy companies,” Kunle Ezun and Kenneth Asenime, analysts at Ecobank Transnational Inc. in Lagos, wrote in an e-mailed note today.

The oil industry is the second major source of dollar supplies in the country after the Central Bank of Nigeria, which offers dollars at auctions on Mondays and Wednesdays and through interbank trading to maintain exchange-rate stability. The Abuja-based regulator sold $430 million this week, the most in three.

The yield on Nigeria’s 7 percent domestic bonds due October 2019 dropped 56 basis points to 14.41 percent, according to yesterday’s data on the Financial Markets Dealers Association website. Yields on the nation’s $500 million of Eurobonds due January 2021 slid one basis point to 4.92 percent today.

Ghana’s cedi was up 0.1 percent to 1.9315 a dollar in Accra.

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

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net


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