Nigeria’s Naira Snaps 2 Days of Gain on Importer Demand

The naira weakened for the first time in three days as importers sought dollars and the central bank cut supply of the U.S currency at an auction.

The currency of Africa’s top oil producer fell 0.1 percent to 157.65 a dollar in the interbank market as of 3:56 p.m. in Lagos, the commercial capital, according to data compiled by Bloomberg.

The Central Bank of Nigeria sold $180 million at a foreign- currency auction today, the lowest since Aug. 29, the Abuja- based bank said in an e-mailed statement. The West African nation relies on imports to meet more than 70 percent of domestic fuel needs because of a lack of refining capacity, according to the Petroleum Ministry.

“The naira lost ground against the dollar at the beginning of last week as bids, which were not fulfilled at the CBN’s auction on Monday, spilled over into the interbank market, creating a liquidity imbalance,” Celeste Fauconnier and Nema Ramkhelawan-Bhana, strategists at Rand Merchant Bank, wrote in a report today.

The yield on Nigeria’s 7 percent domestic bonds due 2019 retreated four basis points to 13.78 percent, according to Sept. 7 data on the Financial Markets Dealers Association website. Yields on the nation’s $500 million of Eurobonds due 2021 were little changed at 4.869 percent today.

Ghana’s cedi gained for a fourth day by 0.2 percent to 1.8980 a dollar in Accra, the capital, its strongest since June 4.