Nigeria’s Naira Gains After Worst Week Since 2008

February 16, 2015

Foreign-exchange trading volumes in Nigeria fell on Monday, helping to strengthen the naira after it suffered its worst week since December 2008.

The currency of Africa’s largest economy rose 0.7 percent to 202.05 against the dollar at 12:47 a.m. in Lagos, the commercial capital. It weakened 4.7 percent last week after presidential elections scheduled for Feb. 14 were postponed by six weeks until March 28.

Monday’s rise “could purely be down to inactivity” caused in part by a public holiday in the U.S., Charlie Hampshire, the London-based head of trading at INTL FCStone Ltd., which specializes in frontier market currencies, said in an e-mailed response to questions.

The naira has weakened 9.2 percent this year, the most among 24 African currencies tracked by Bloomberg, as government revenues and export earnings in the continent’s biggest oil producer collapsed along with the crude prices since the end of June.

Source: AFK Insider

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