CBN’s Effort Futile as Naira Resume Descent 

In spite of the Central Bank of Nigeria (CBN) intervention in the past few days, the naira again depreciated after five days of break as demand for dollars increased before the central bank’s first foreign-exchange auction of the first week in September.
The intervention by the apex bank has reduced the nation’s foreign reserves considerably.
The currency of Africa’s biggest oil producer depreciated 0.1 percent to N157.60 per dollar  in Lagos, the commercial capital on Monday, its biggest decline since March 28, according to data compiled by Bloomberg.
The Central Bank of Nigeria (CBN) sold $237 million at an auction on April 3, its only sale of foreign currency last week because of a public holiday. That compared with $576.6 million sold in the previous week. The regulator offers foreign currency at auctions on Mondays and Wednesdays to maintain exchange-rate stability.
“There is increased demand for the dollar today as there was only one auction last week,” Sewa Wusa, head of research at Sterling Capital Ltd., said.
Borrowing costs on Nigeria’s local-currency debt due January 2022 rose two basis points to 10.91 percent, according to April 5 prices compiled by the Financial Markets Dealers Association.
Yields on Nigeria’s $500 million of Eurobonds due January 2021 declined six basis points to 4.23 percent.

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