Naira Rises Against Dollar on Nigeria Central Bank Stabilization

By Chris Kay

Nigeria’s naira advanced against the dollar for a third day after the central bank of Africa’s top crude producer said it favoured a stable currency.
The naira strengthened 0.3 percent to 160.65 per dollar as of 11:17 a.m. in Lagos, the commercial capital, according to data compiled by Bloomberg.
The West African nation isn’t under pressure to devalue the naira again after lowering its band against the dollar last year, Central Bank of Nigeria Governor Lamido Sanusi said yesterday. The bank kept its benchmark interest rate unchanged at a record high for a second consecutive meeting Jan. 31 and Sanusi said he favors a stable exchange rate while building up reserves.
“So far the CBN’s extraordinary measures have been effective at stabilizing the naira and reserves are showing more convincing signs of having reached a bottom,” Alan Cameron, an economist at CSL Stockbrokers Ltd. in London, wrote in an e- mailed note to clients today.
The foreign-exchange reserves of Africa’s most populous nation have risen 4.5 percent this year to $34.4 billion as of Jan. 27, according to Central Bank of Nigeria data.
Ghana’s cedi weakened for a third day, dropping 0.1 percent to 1.6831 per dollar, according to data compiled by Bloomberg.
To contact the reporter on this story: Chris Kay in Abuja at ckay5@bloomberg.net
To contact the editor responsible for this story: Stephen Kirkland at skirkland@bloomberg.net