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Naira Stable as Nigeria’s Eurobond Climbs

19 Feb 2013

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Naira notes

Nigeria’s $500 million Eurobond yields rallied for the first time in five days after a forecast that the country’s economic growth will accelerate this year and as foreign-exchange reserves increased.

THISDAY checks showed that the naira was also stable at the Wholesale Dutch Auction System (WDAS) Monday as it maintained its value of N155.74 to a dollar. The apex bank also sold a total of $120 million to dealers, same as last Monday’s auction.

According to Bloomberg, borrowing costs on Eurobond due January 2021 declined three basis points to 4.370 percent as in London.

Nigeria’s external reserves have advanced six percent this year to $46.72 billion as at February 15, the highest since 2010, according to the central bank.

Bloomberg quoted Head of Research, Sterling Capital Limited, Sewa Wusu, to have said: “With rising gross domestic product and external reserves as well as decelerating inflation rate, the outlook for the Nigerian economy remains favorable.”

The yield on the country’s 16.39 percent domestic bonds due January 2022 declined six basis points to 10.78 percent in the secondary market, according to February 15 data compiled on the Financial Markets Dealers Association website.

Tags: Business, Nigeria, Featured, Naira, Nigeria’s Eurobond

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