Nigeria’s naira strengthened for a second day, reaching the highest in more than two months, as citizens living abroad returned for the holiday period, increasing the supply of dollars.
The currency of Africa’s biggest oil producer appreciated 0.6 percent to 156 a dollar at 2:13 p.m. in Lagos, the commercial capital. The naira has risen 4 percent this year, the second-best performer in Africa, according to data compiled by Bloomberg.
“Many Nigerians in the diaspora have come home with dollars, which has increased the supply,” Pabina Yinkere, head of research at Vetiva Capital Management Ltd., said by phone from Lagos today.
Remittances to sub-Saharan African countries from citizens abroad are forecast to increase 6.3 percent to $24 billion, the World Bank said in June. Nigeria, Kenya, Sudan, Senegal and South Africa are the largest recipients of remittances in sub-Saharan Africa, with about 69 percent of the funds in 2010 from migrants in the U.S. and Western Europe, according to the bank.
The yield on Nigeria’ $500 million of Eurobonds due January 2021 declined one basis point to 4.008 percent today.
Ghana’s cedi fell 0.2 percent to 1.9050 per dollar in Accra, the capital. The currency of West Africa’s second-largest economy has fallen 0.6 percent this week and 16 percent this year.