Nigerian Naira and Ghanaian Cedi strenghten against the US Dollar

By Segun Adekoye

Nigeria’s foreign currency reserves have move up by 11 per cent this year to $36.5 billion, according to the Central Bank data released on April 27. This was partly due partial reduction in fuel subsidy in January and the 9 per cent gain in the nation’s benchmark Bonny Light crude during the same period.

Yvonne Mhango, an economist at Renaissance Capital, Johannesburg, wrote “The partial removal of the subsidy partly explains the $4.1 billion increase in foreign reserves year-to-date to $36.5 billion and Naira stability, compared with 2011’s depreciation trend,”

The Naira has advanced 3.2 percent this year versus the dollar. As of 11:29, May 2nd, the Naira had strengthened by 0.1 percent to 157.32 per Dollar in Lagos, the commercial capital of Nigeria. The currency has advanced 3.2 percent this year versus the Dollar. The Ghanaian Cedi also experienced a rise, as it moved from 0.2 percent to 1.8525 per dollar, in Accra, the capital around the same period.

According to the data compiled by Bloomberg, borrowing costs on Nigeria’s $500 million of Eurobonds due 2021 fell 13 basis points, or 0.13 percent, to 5.398 percent. Yields on Nigeria’s Naira bonds due in 2015 were unchanged at 15.06 percent, according to April 30 data on the Financial Markets Dealers Association’s website.

Post Author: Segun Adekoye

Olusegun Adekoye is an Analyst at CP AFRICA. He is a writer of short stories, poems and feature articles, speaker and blogger. His articles and write-ups have been featured on several blogs and websites including BBC. He reported on Technology news for Bikya Masr (Egypt). He lives at http://adekoye.blogspot.com He can be reached at segun@cp-africa.com

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