Nigeria’s Naira Snaps Two-Day Decline on Investor Inflows

Nigeria’s naira appreciated for the first time in three days after the central bank increased sales of Treasury bills at an auction.

The currency of Africa’s biggest oil producer gained 0.2 percent to 157.70 per dollar as of 3:50 p.m. in Lagos, the commercial capital, according to data compiled by Bloomberg.

The Central Bank of Nigeria sold 190 billion naira ($1.2 billion) of Treasury bills at an auction yesterday with a total subscription of 266 billion naira, the Abuja-based bank said today in an e-mailed statement. That compares with 135.65 billion naira at the previous auction on Feb. 20.

The strengthening of the naira is largely due to “robust capital inflows into government securities,” Kunle Ezun and Kenneth Asenime, analysts at Ecobank Transnational Inc. in Lagos, wrote in an e-mailed note to clients today.

The yield on the country’s 16.39 percent domestic bonds due January 2022 rose 10 basis points to 10.86 percent, according to yesterday’s data compiled on the Financial Markets Dealers Association website.

Yields on Nigeria’s $500 million of Eurobonds due January 2021 fell 15 basis points to 4.133 percent today.

Ghana’s cedi gained less than 0.1 percent to 1.9145 per dollar in Accra, the capital.

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