Nigerian Naira Pares Drop as Economic Expansion Quickens

The naira pared a decline to the weakest level in three weeks after a report showed economic growth accelerated in the second quarter.

The naira was unchanged at 158.1 per dollar as of 4:41 p.m. in Lagos, the commercial capital. The currency earlier slid as much as 1.6 percent to 160.6050, its worst intraday level since Aug. 9, according to data compiled by Bloomberg. The naira has risen 2.7 percent this year, the best performing currency in Africa.

Nigeria’s economy expanded 6.6 percent in the second quarter compared with 6.2 percent in the prior three months, the Central Bank of Nigeria said in a report on its website today.

The yield on Nigeria’s 7 percent domestic bonds due 2019 retreated 60 basis points to 13.81 percent, according to Aug. 30 data on the Financial Markets Dealers Association website. Yields on the nation’s $500 million of Eurobonds due 2021 rose four basis points to 4.957 percent today.

Ghana’s cedi gained less than 0.1 percent to 1.9330 a 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