Naira stables at 365/$1, weakens to 465 to Pound sterling

A day after recording a significant gain, against the three major currencies across the foreign exchange markets in the country, the Nigerian currency, Naira, at the end of trading on Wednesday, closed at 365 per dollar, while weakened by a whopping five points against the Pound Sterling, to close at N465.

The naira, which traded earlier in the week at 370, moved swiftly on Tuesday to 368 per dollar; and continued its gaining streak to close at the year best rate of 365 to a US Dollar, but retained the same rate at the close of the unofficial segment of the forex market on Thursday.

Also, at the official forex market, the naira stood steady at 305.60 against, the same rate sold on Wednesday, but gained at the Investors and Exporters FX window, to open at 376.03 against 377.14 opened on Wednesday while closed at 375 against 373.53 per US dollar.

Meanwhile, the Central Bank of Nigeria, CBN, had injected $190m into forex market, responsible for the further gain recorded over the three global major currencies.

The local currency had closed at 371/dollar on Friday, having appreciated to 374/dollar on Thursday from 382/dollar recorded on Wednesday.

Last week, the naira closed at 382/dollar consecutively from Monday to Wednesday.

However, the Africa’s largest economy, grappling with a currency crisis brought on by low oil prices which hammered its foreign reserves and created chronic dollar shortages, has resorted to regular injections of dollars by the central bank to narrow the spread between the official and black market rates.

Meanwhile, the Federal Government has concluded all plans to begin an international road show next week for the sale of a diaspora bond and has named Bank of America Merrill Lynch and Standard Bank of South Africa as joint lead managers, its debt management office said on Thursday.

Africa’s biggest economy first unveiled in 2013 plans to sell diaspora bonds worth between $100 million to $300 million from Nigerians living abroad. But the government at the time did not appoint a bookrunner until an election brought the opposition into office.

A roadshow will start on June 13, with meetings planned in Britain, Switzerland and the United States, the debt office said in a statement.

“Nigeria has filed a registration statement for the Bonds with the United States Securities and Exchange Commission,” the statement said, adding that the Bonds would be listed in London. It gave no price expectations.

Nigeria, grappling with its first recession in 25 years that was largely brought on by low oil prices and the impact of attacks on energy facilities in the Niger Delta, has set a budget of 7.44 trillion naira ($23.66 billion) this year.

The West African country expects a budget deficit of about 2.21 trillion naira in 2017, as it tries to spend its way out of a recession, with more than half the deficit to be funded through external borrowing.