Breaking News

Brent Crude Drops Below $70 a Barrel for the First Time Since May 2010
Tweet TWEET

Naira Weakens for a Third Day as Fall in Crude Oil Curbs Revenue

Nigeria’s naira weakened for a third day against the dollar, extending this week’s decline, as a drop in oil prices cut prospects for income from the West African nation’s key export.

The currency of Africa’s biggest oil producer depreciated less than 0.1 percent to 161.27 per dollar on the interbank market as of 2 p.m. in Lagos, the commercial capital, according to data compiled by Bloomberg. The naira has lost 0.2 percent this week.

Oil fell in New York on signs from Asia and the U.S. that the global recovery is faltering and eroding demand for fuels. Nigerian benchmark Bonny Light crude slipped 1.1 percent, extending declines since the end of April to 17 percent.

Nigeria’s foreign-currency reserves have fallen by $1.2 billion since the end of May to $36.49 billion, according to July 10 data compiled by the Abuja-based central bank.

The yield on Nigeria’s domestic 15.1 percent bonds due 2017 rose six basis points to 16.04 percent, according to July 11 data on the Financial Markets Dealers Association website. Yields on the nation’s $500 million of Eurobonds due 2021 rose one basis point to 5.54 percent today.

Ghana’s cedi strengthened less than 0.1 percent to 1.954 per dollar in Accra, the capital.

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

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.