The naira gained for a third day and headed for its strongest in more than two weeks on speculation that Nigerian oil producers will sell dollars to meet month-end expenses before a currency auction today.

The currency of Africa’s second-biggest economy rose less than 0.1 percent to 158.15 per dollar by 12:21 p.m. in Lagos, the commercial capital, poised for the highest close since March 8, according to data compiled by Bloomberg.

Oil producers, which sell dollars to meet local expenses around the end of the month, are the second-biggest source of foreign currency after the Central Bank of Nigeria. The institution sells dollars at auctions on Mondays and Wednesdays to help manage the exchange rate.

“We anticipate appreciation of the naira in the forex market amid dollar sales by multinationals to meet month-end obligations,” analysts at Lagos-based Cowry Asset Management Ltd., led by Edgar Ebinum, wrote in an e-mailed note to clients today.

The yield on the country’s 16.39 percent domestic bonds due January 2022 dropped four basis points to 11.20 percent in the secondary market, according to March 22 data compiled on the Financial Markets Dealers Association website. Yields on the $500 million of Eurobonds due January 2021 declined nine basis points to 4.24 percent today.

Ghana’s cedi gained less than 0.1 percent to 1.9390 per dollar in Accra.

Source: Bloomberg (By Emele Onu)