Naira Falls to One-Week Low as Bank Dollar Sales Miss Demand
The naira depreciated for a second day and headed for lowest in a week as the central bank offered fewer dollars than buyers expected at an auction yesterday and as investors’ demand for Nigerian debt waned.
The currency of Africa’s biggest oil producer fell as much as 0.2 percent to 159.05 per dollar, the weakest level on a closing basis since March 14, and traded at 158.85 per dollar by 1:12 p.m. in Lagos, according to data compiled by Bloomberg.
The Central Bank of Nigeria sold $280 million at a foreign- currency auction yesterday, less than the $300 million sold on March 18, according to data on the institution’s website.
“Dealers demanded more than the central bank offered yesterday,” Sewa Wusu, an analyst at Lagos-based Sterling Capital Ltd., said by phone today, declining to give an amount. “The CBN was expected to supply more to offset a shortfall in offshore inflows and rising import demand,” he said.
The yield on the country’s 16.39 percent domestic bonds due January 2022 declined two basis points to 11.24 percent in the secondary market, according to yesterday’s data compiled on the Financial Markets Dealers Association website. Yields on the $500 million of Eurobonds due January 2021 declined three basis points to 4.301 percent.
Ghana’s cedi weakened 0.4 percent to 1.9415 per dollar in Accra, the capital, the lowest on a closing basis since Aug. 22.
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