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Naira appreciates after CBN dollar sale

By The Citizen
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The naira gained the most this month after the Central Bank of Nigeria (CBN) increased the amount of dollars it sold at an auction.

The naira climbed 0.1 percent, the most on a closing basis since January 31, to N157.25 per dollar.

The CBN sold $180 million to lenders, it said in an e-mailed statement, the highest in three auctions. The apex bank sells dollars on Mondays and Wednesdays to support the naira.

'The increase in dollar supply was a boost to the naira,' Sewa Wusu, a currency analyst at Lagos-based Sterling Capital Limited, said by phone yesterday.

The yield on the country's 16.39 per cent domestic bonds due in January 2022, fell four basis points to 10.88 per cent in the secondary market, according to yesterday's data compiled on the Financial Markets Dealers Association's website.

Borrowing costs on Nigeria's $500 million of Eurobonds due January 2021, were little changed at 4.179 per cent yesterday.