Nigeria Central Bank Selling Dollars to Stem Naira Slide

The Central Bank of Nigeria sold dollars directly to lenders outside of its regular currency auctions to meet demand and stabilize the naira, which gained today to pare a quarterly depreciation.

Demand for dollars in Africa’s largest economy and oil producer helped push the naira 0.4 percent lower in the three months through September. The central bank’s auctions on Mondays and Wednesday are the biggest source of foreign exchange in the country, followed by currency sales from oil companies.

The naira reversed a decline of as much as 0.8 percent against the dollar today to trade 0.1 percent stronger at 163.65 by 2:48 p.m. in Lagos. The central bank keeps the naira at 3 percent above or below 155 per dollar at its twice weekly auctions to lenders and money-changers.



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