Bloomberg News

Nigeria’s Naira Falls Third Day as Import Dollar Demand Climbs

September 04, 2012

The naira fell for a third day against the dollar on the Nigerian interbank market as import demand increased.

The currency of Africa’s biggest crude producer fell 0.2 percent to 158.5 a dollar as of 2:26 p.m. in Lagos, the commercial capital. The naira has advanced 2.4 percent this year, the best performer in Africa according to data compiled by Bloomberg.

“There was some late demand,” Samir Gadio, an emerging markets strategist in London at Standard Bank Group Ltd., said in an e-mailed reply to questions today. The currency earlier rallied on speculation that oil companies were going to sell dollars in the market, Gadio said.

Fuel imports have been a source of pressure on the naira, according to the Central Bank of Nigeria, with the country relying on imports to meet more than 70 percent of domestic fuel needs because of a lack of refining capacity.

The yield on Nigeria’s 7 percent domestic bonds due October 2019 dropped 29 basis points to 13.52 percent, according to yesterday’s data on the Financial Markets Dealers Association website. Yields on the nation’s $500 million of Eurobonds due January 2021 slid seven basis points to 4.89 percent today.

Ghana’s cedi was down 0.1 percent to 1.9355 a dollar in Accra.

To contact the reporter on this story: Chris Kay in Abuja at ckay5@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net


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