Nigeria’s naira strengthened for a second day against the dollar on bets higher foreign-exchange reserves will help the central bank keep the currency stable. The currency of Africa’s largest oil producer appreciated 0.2 percent to 159.80 per dollar as of 11:32 a.m. in Lagos, the commercial capital, the strongest since Dec. 20, according to data compiled by Bloomberg. The foreign-exchange reserves of Africa’s most populous nation increased 5.5 percent this year to $34.7 billion as of Feb. 2, according to the central bank. Nigeria’s central bank offers foreign currency to lenders at twice-weekly auctions and also sells dollars directly to banks through the interbank market by dipping into reserves, as it tries to keep the exchange rate around a midpoint of 155 naira per dollar and stabilize prices. “We expect to see appreciation of the naira as the central bank continues its intervention on the back of the boost in foreign-exchange reserves,� analysts at Lagos-based Cowry Asset Management Ltd., said in an e-mailed note to clients today. The central bank is holding its twice-weekly foreign- currency auction today. Nigeria would like to keep the exchange rate stable while building up reserves, Central Bank Governor, Lamido Sanusi said Jan. 31. The regulator kept its benchmark interest rate unchanged at a record high for a second consecutive meeting on Jan. 31 to curb inflation after the government partially removed fuel subsidies, boosting gasoline costs. Ghana’s cedi strengthened less than 0.1 percent to 1.6881 per dollar as of 11:32 a.m. in Accra, the capital, according to data compiled by Bloomberg. To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net

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