Naira Gains Most This Month After Dollar Auction: Lagos Mover

The naira strengthened the most this month, erasing earlier declines, after the Nigerian central bank sold the largest amount of dollars in two weeks at an auction.

The currency of Africa’s biggest crude producer appreciated 0.5 percent to 162.60 per dollar as of 4:43 p.m. in Lagos, the commercial capital, its biggest gain since Aug. 30, according to data compiled by Bloomberg.

The Central Bank of Nigeria sold $300 million at a foreign-exchange auction to lenders today, it said in an e-mailed statement. That’s the most at a sale since Aug. 26, according to data on its website. The regulator, which sells dollars at twice-weekly auctions to support the naira, is the country’s major supplier of foreign currency.

“Increased dollar supply by the central bank reduced pressure on the naira, prompting the local unit to strengthen,” Tunde Ladipo, the chief executive of Lagos-based Valuechain Investment Ltd., said by phone.

The yield on Nigeria’s Eurobonds due January 2021 slipped two basis points, or 0.02 percentage point, to 5.875 percent.

Ghana’s cedi weakened 0.1 percent to 2.1800 per dollar in the capital, Accra, its lowest level on record.

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

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

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