Nigeria’s Naira Advances as Oil Companies Said to Sell Dollars

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Nigeria’s naira strengthened against the dollar, paring a weekly loss, as oil companies were said to have sold foreign exchange.

The currency of Africa’s biggest oil producer advanced 0.2 percent to 157.5 per dollar as of 11:10 a.m. on the interbank market in Lagos, the commercial capital. The naira, which has gained 3.1 percent this year, the strongest performer in Africa, is heading for a decline of 0.2 percent this week.

“The release of funds from oil companies on the market” is supporting the naira, Jide Solanke, an analyst at First Securities Discount House Ltd., said by phone from Lagos today.

Oil companies are the second-biggest suppliers to the market after the Central Bank of Nigeria, which manages the naira by selling foreign currency to lenders in biweekly auctions. The central bank, based in the capital Abuja, sold $270 million to lenders this week, the same amount as a week earlier.

Yields on the West African nation’s Eurobonds due 2021 fell three basis points, or 0.03 percent, to 5.316 percent. Borrowing costs on Nigeria’s naira debt due 2015 fell five basis points to 14.96 percent, according to May 10 data on the Financial Markets Dealers Association website.

Ghana’s cedi slipped for a second day, retreating 0.5 percent to 1.889 per dollar in Accra, the capital.

In : Finance

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