Naira Poised for Best Week in 3 After Bond Auction, Bank Sales
The naira was set for its best week in three after the last Nigerian bond and central bank foreign- exchange auctions for the year held this week.
The currency of Africa’s biggest oil producer was unchanged at 157.2 a dollar at 11:30 a.m. in Lagos, the commercial capital. The naira has risen 0.3 percent this week, according to data compiled by Bloomberg.
Nigeria’s 10-year borrowing costs declined to the lowest ever at the last auction two days ago. The 30 billion naira ($190 million) of bonds due January 2022 were sold at a marginal yield of 11.9001 percent, a record low. The Central Bank of Nigeria sold $300 million the same day at its last foreign- currency auction of the year, the most at a single sale since Aug. 8, according to data compiled by Bloomberg.
Yields on 10-year naira debt were unchanged at 11.89 percent in the secondary market, according to yesterday’s prices compiled on the Financial Markets Dealers Association website. Borrowing costs on the nation’s $500 million of Eurobonds due January 2021 declined one basis point to 4.09 percent today, retreating four basis points this week.
Ghana’s cedi was little changed at 1.8963 per dollar in Accra, the capital. The currency of West Africa’s second largest economy has fallen 0.3 percent this week.
To contact the reporter on this story: Chris Kay in Abuja at email@example.com
To contact the editor responsible for this story: Vernon Wessels at firstname.lastname@example.org