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NAIRA GAINS ON INFLOWS, RESERVES

By NBF News
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The naira snapped three days of declines on dollar inflows and on bets the central bank will support the currency as reserves increased.

The naira climbed 0.1 per cent to 158.30 per dollar The naira has climbed 2.6 percent this year, the best performer in Africa, according to data compiled by Bloomberg.

The Central Bank of Nigeria sold N142.9 billion ($903 million) of 91-day, 182-day and 364-day treasury bills at an auction, yesterday.

The CBN had also stated that Nigeria's foreign-currency reserves have risen 18 per cent this year to $38.9 billion, according to Aug. 31 data compiled by the central bank. The regulator sold $200 million at a foreign currency auction on September 3, compared with $180 million at a sale on August 29.

'The naira is strengthened by foreign investments into treasury bills and the expectation that the central bank will support the currency against the backdrop of rising foreign exchange reserves,' Edgar Ebinum, analyst at Lagos-based Cowry Asset Management Ltd., said in a telephone interview today.

The yield on Nigeria's seven per cent domestic bonds due 2019 rose 44 basis points to 13.96 per cent, according to September 4 data on the Financial Markets Dealers Association website. Yields on the nation's $500 million of Eurobonds due 2021 fell three basis points to 4.9 percent today.

Ghana's cedi rose 0.2 percent to 1.9315 a dollar in Accra, the capital.