Naira Closes Down 1 Per Cent Despite CBN Intervention

Money_newNigeria’s Central Bank intervened on the interbank market on Tuesday to prop-up the naira, but the local unit still closed down 1 percent owing to strong dollar demand, traders said.

The local currency closed at 180.50 to the dollar, compared with 178.70 a dollar on the previous day.

Dealers said dollar demand remain strong from offshore funds selling down their equity holdings.

“The amount of dollars sold by the central bank was not sufficient to support the naira,” one dealer said.

The local currency is seen trading around the 180 level until the end of the year, baring any major measure by the central bank, dealers said.

Nigeria 2024 bond Yield Eases On JP Morgan Index Inclusion

Money_newYields on Nigeria’s 2024 bond shed 15 basis points to 11.89 percent on Friday, after JP Morgan added it to its Government Bond Index-Emerging Market (GBI-EM), attracting offshore funds, dealers said.

The 10-year benchmark bond opened for trade at 12.04 percent.

Last week JP Morgan said it added Nigeria’s 2024 bond to its emerging market government bond index, in addition to five other bonds already listed, pushing its yield down 22 bps.

Since then, some investors have taken profits, dealers said.

The addition also lifted overall trading volumes on Friday to around 11.5 billion naira ($70 million) on Friday, compared with an average of around 8 billion to 9 billion naira, dealers said.

JP Morgan valued Nigeria’s outstanding bond issues on its index at $13.75 billion.