Nigerian naira hit 3-month low, despite central bank intervention

Nigeria's central bank gov, Emefiele

Nigeria's naira  fell 0.34 percent to a three-month closing low of 163.45 against the dollar on Wednesday, despite the central bank's intervening for a second day, as oil prices continued to decline, dealers said.
The currency fell as low as 163.70 naira on strong demand for dollars during intraday trade before the central bank's action help it to recover to 163.45, a level last seen on June 16. The naira closed at 162.90 against the dollar on Tuesday.
The central bank has been selling undisclosed amounts of dollars directly to lenders this week to try to stablise the naira, which has declined 3.5 percent so far this year. The naira gained 0.15 percent on Tuesday after the intervention
"Dollar demand has increased due to falling oil prices, declining supply from oil companies and politicians holding their assets in hard currency ahead of 2015 national elections," one dealer told Reuters.
Brent crude oil price fell to around $98.6 a barrel on rising supplies and signs that growth in demand was slowing in China and Europe. That created a shortage of dollars in Nigeria's forex interbank market and put pressure on the naira. Crude makes up around 95 percent of forex earnings in Nigeria.
A Reuters poll sees Brent crude oil capped around $105.30 a barrel next year, which bodes well for Nigeria's revenues. But an increase in supply of shale oil from the United States and sluggish global demand may mean that is as high as the price will go.