LAGOS, Sept 22 (Reuters) - Nigeria naira slipped0.27 percent on Monday amid a shortage of dollars on theinterbank market, as higher demand coupled with declining globaloil prices raised doubts about the central bank's ability tosupport the local currency.
The naira closed at 163.85 to the dollar, below thethree-month low of 163.45 naira it touched a week ago. The nairaclosed at 163.40 on Friday.
"Dollar demand from politicians holding their assets in hardcurrency ahead of elections next year has increased pressure onthe local currency," one dealer said.
The central bank was selling dollars directly on theinterbank market to try to prop up the currency, which has shedalmost 3.5 percent this year, for most of last week.
On Monday, the local unit of Royal Dutch Shell soldan undisclosed amount of dollars to some lenders, which was notenough to support the naira.
The naira has "depreciated substantially" on the interbankmarket in the past two months, Central Bank Governor GodwinEmefiele noted during last Friday's interest-rate-settingmeeting, citing risks from declines in global oil prices anddomestic production.
Brent crude oil fell below $98 a barrel on Monday, droppingfor the third session in four, as sluggish demand and amplesupplies outweighed expectations of a cut in oil output from theOrganization of the Petroleum Exporting Countries.
Dealers expect dollar sales by multinational oil companiesas they meet their month-end domestic obligations to providesome support for the naira in the days ahead. (Reporting by Oludare Mayowa; Editing by Chijioke Ohuocha,Larry King)
