Nigeria Naira hits 8-month low as firms hedge currency risk

 The Nigeria's Naira eased to an 8-month closing low of 165.55 against the dollar on Tuesday, due to strong dollar demand from importers and companies reducing their exposure to the local currency, dealers said.

The Naira fell 0.16 percent from Monday's close of 164.28 to the dollar, a level last seen on Feb. 21, a day after the president suspended the central bank governor, sending financial markets into a tailspin.

Concerns about the falling price of oil, Nigeria's main source of foreign currency earnings, contributed to the drop. Dealers said the local subsidiary of Chevron sold $45 million to Nigerian banks, but that was not enough to support the naira.

The currency has lost 4.1 percent against the dollar so far this year and is trading above the central bank's target range of within 3 percent of 155 naira to the dollar.

Reuters reports that demand for hard currency was coming from local importers and companies worried about the risk of a devaluation