Bloomberg News

Naira Gains Most in 4 Weeks as Oil Company Said to Sell Dollars

February 22, 2013

The naira appreciated the most in four weeks as an oil producer was said to sell dollars to lenders, boosting supply.

The currency of Africa’s biggest oil producer climbed 0.2 percent to 157.25 per dollar as of 12:57 p.m. in Lagos, the commercial capital. The naira gained for a second week by less than 0.1 percent.

Dealers attributed the gains to inflows of $100 million from an oil producer, Kunle Ezun, a Lagos-based analyst at Ecobank Transnational Inc., said by phone today.

The naira is being buoyed in part by oil company inflows, central bank Governor, Lamido Sanusi said last month. Oil producing companies periodically sell dollars to lenders to meet local spending needs and are the second-biggest source of foreign currency after the Central Bank of Nigeria, which sells dollars at auctions on Mondays and Wednesday to stabilize the naira. The bank sold $120 million on both days this week.

The yield on the country’s 16.39 percent domestic bonds due January 2022 rose eight basis points to 10.48 percent, according to yesterday’s data compiled on the Financial Markets Dealers Association website.

Ghana’s cedi declined 0.2 percent to 1.9115 per dollar in Accra, the capital.

To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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