Bloomberg News

Naira Rises Most This Month After Central Bank Sells Dollars

February 11, 2013

Nigeria’s naira gained the most this month after the central bank increased the amount of dollars it sold at an auction.

The currency of Africa’s biggest oil producer climbed 0.1 percent, the most on a closing basis since Jan. 31, to 157.25 per dollar as of 3:35 p.m. in Lagos, the commercial capital.

The Central Bank of Nigeria sold $180 million to lenders, it said in an e-mailed statement, the highest in three auctions. The regulator sells dollars on Mondays and Wednesdays to support the naira.

“The increase in dollar supply was a boost to the naira,” Sewa Wusu, a currency analyst at Lagos-based Sterling Capital Ltd., said by phone today.

The yield on the country’s 16.39 percent domestic bonds due in January 2022 fell 4 basis points to 10.88 percent in the secondary market, according to today’s data compiled on the Financial Markets Dealers Association website. Borrowing costs on Nigeria’s $500 million of Eurobonds due January 2021 were little changed at 4.179 percent today.

Ghana’s cedi appreciated 0.3 percent to 1.9005 per dollar in Accra, the capital.

To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net;

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net


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