Naira jumps after success of domestic Nigerian dollar-bond sale

Nigeria’s naira gained the most in almost two months after the West African nation announced that its debut domestic dollar-bond issue attracted significant demand.

The unit surged 4.8% against the dollar on Wednesday, the biggest increase since July 22, according to data compiled by Bloomberg. The currency closed at 1,558 naira per dollar, its strongest level against the greenback since Aug. 21.

The government earlier said it raised $900 million in its first domestic sale of dollar-denominated bonds, almost double the targeted amount.

“This milestone signals a new chapter in the country’s financial strategy, aimed at boosting economic resilience and fostering long-term growth,” Finance Minister Wale Edun said in a post on X.

The five-year notes, which carry a 9.75% coupon, were 180% oversubscribed, according to the Lagos-based Africa Finance Corp., which coordinated the sale.

The naira, which has lost about 70% of its value since June 2023, has been under recent pressure, prompting the central bank to announce Friday that it will boost local dollar liquidity by selling as much as $20,000 to each of the nation’s almost 5,700 bureau-de-change operators.