Naira records worst performance in months

The Nigerian currency the naira has extended its worst weekly performance in a year on less than expected dollar sale by the Nigerian National petroleum Corporation (NNPC).

The naira fell for the fourth day as the NNPC dollar supply was weak.

The NNPC and oil companies are the second-biggest source of dollars after the Central Bank of Nigeria (CBN), which offers foreign currency at auctions on Mondays and Wednesdays to maintain exchange-rate stability.

The naira weakened as much as 0.4 per cent before trading 0.3 per cent lower at N159.35 per dollar on Friday, extending its weekly decline to 0.7 per cent, the biggest fall since the five days through June 8, 2012.

Analysts believe however that the apex will intervene in the market in the near term and sell dollars directly to the banks to defend its nominal monetary policy anchor.