Naira Reclaims Value as Nigeria Mulls Eurobond Raise

Naira Reclaims Value as Nigeria Mulls Eurobond Raise

Still not impressive for a country that relies heavily on imports to feed more than 200 million people, however, the Nigerian naira reclaims value at the official window on Wednesday.

As pressure on dollar demand eased, the Naira was exchanged at N440.67 to the dollar at the Investors and Exporters window. The local currency gained 0.11 per cent, compared with N441.17 to the dollar it exchanged on Tuesday.

Currencies traders said in their market notes that the open indicative rate closed at N440 to the dollar on Wednesday. An exchange rate of N461 to the dollar was the highest rate recorded within the day’s trading before it settled at N440.67.

The Naira sold for as low as N415.50 to the dollar within the day’s trading. A total of 95.39 million dollars was traded at the official Investors and Exporters window on Wednesday.

Data from the Central Bank of Nigeria shows that external reserves still trending at $38 billion market. Ahmed Zainab, the finance minister told Bloomberg in Washington D.C yesterday that Nigeria will consider Eurobond raise in 2023 if market conditions improve.

Federal Government had planned to support budget deficit with foreign currencies borrowings in 2022 but increasing monetary policy tightening at the global level deterred Eurobond raise in the year.

Central Bankers across the world have switched to a hawkish mood with fast and furious policy tightening in the United States, Europe and other developed markets. READ:Naira Reclaims Value on Black Market, Official Window

Federal government borrowings from China have declined as Beijing’s African-focused lending policy faces covid-19 pressures. Nigeria’s debt office plans to raise another N720 billion in the fourth quarter to augment the budget deficit.

In the first half of 2022, Federal Government revenue underperformed expectations by more than 50%, according to Budget Office.

# Naira Reclaims Value as Nigeria Mulls Eurobond Raise#