Nigeria’s naira gained 4.8% against the US dollar on Wednesday, marking its biggest rise in nearly two months, following the government’s announcement of a successful domestic dollar-bond sale. The currency closed at 1,558 naira per dollar, its strongest level since August 21, according to data from Bloomberg.
The West African nation raised $900 million in its first-ever domestic dollar-bond sale, almost double the initial target. Finance Minister Wale Edun described the achievement as a key step in strengthening the country’s economy. “This milestone signals a new chapter in the country’s financial strategy, aimed at boosting economic resilience and fostering long-term growth,” Edun said in a post on X.
The five-year bonds, which offer a 9.75% coupon rate, were 180% oversubscribed, according to the Lagos-based Africa Finance Corporation, which coordinated the sale.
Despite losing about 70% of its value since June 2023, the naira’s recent rally comes after the central bank announced measures to increase dollar liquidity, pledging to sell up to $20,000 to each of the country’s 5,700 bureau-de-change operators. These efforts are aimed at stabilizing the naira and addressing ongoing pressure on the currency.
