The naira gained as oil companies began month-end dollar sales to fund local operations and after weak demand for the U.S. currency in central bank auctions. The currency of Africa’s biggest oil producer appreciated as much as 1.4 percent, its strongest level since Sept. 13, before paring its advance to 0.2 percent higher as of 11:44 a.m. in Lagos, the commercial capital. “The naira is expected to appreciate this week, particularly on the interbank market, as oil firms sell U.S. dollars as part of their month-end processes,� Celeste Fauconnier and Nema Ramkhelawan-Bhana, Africa analysts at Rand Merchant Bank in Johannesburg, wrote in an e-mailed note today. “Dollar demand at the twice-weekly foreign currency auctions was rather subdued last week, falling well short of the amount offered by the central bank.� The Central Bank of Nigeria offers dollars at auctions on Mondays and Wednesdays and through interbank trading to maintain exchange-rate stability. The oil industry is the second major source of dollar supply in the country. Fuel imports have been a large source of pressure on Nigeria’s foreign-currency market and demand for foreign currency to fund fuel imports has eased, central bank Deputy Governor Tunde Lemo told a committee probing oil subsidy payments on Feb. 7. Ghana’s cedi weakened for the third time in four days by less than 0.1 percent to 1.7059 per dollar, as of 10:44 a.m. in Accra, the nation’s capital. 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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