Nigerian naira falls further, devalued level faces test

Nigeria's naira fell 2.5 percent on Friday, despite central bank intervention, and it briefly touched a record low on concerns OPEC's decision not to cut oil output would put further pressure on Nigeria's shaky finances.The central bank has struggled to keep the naira within its preferred band even after devaluing the currency by 8 percent on Tuesday in a bid to halt a slide in Nigeria's foreign reserves. Oil sales provide around 95 percent of those reserves.The naira briefly touched a record low of 180.90, according to Thomson Reuters dealing...

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Nigeria's interbank lending rates ease to 12 pct on liquidity boost

Nigeria's interbank lending rates slipped on Friday by 800 basis points to around 12 percent for overnight placement, following the retirement of about 415 billion naira ($2.32 billion) in matured treasury bills.The overnight placement rose to 20 percent from 15 percent on Wednesday, draining about 568 billion naira from the banking system. The increase went to meet a 500-basis-point hike in cash reserve requirements (CRR) for lenders.The central bank raised the CRR on private-sector deposits at its monetary policy committee meeting on Tuesday....

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Nigeria currency devaluation to curb banks' Eurobond bonanza

* Nigerian firms issued $5 billion hard currency bonds since 2007 * Banks' foreign currency exposure at $10 billion-analyst  * Naira devaluation should not endanger repayments Nigerian banks' overseas borrowing bonanza looks to be over in the wake of a dramatic currency devaluation this week, but while risks are rising, repaying existing debt should not be a problem for most. Companies in Africa's largest economy have rushed in recent years to take advantage of rock-bottom global borrowing costs and investors' hunger for yield, selling some...

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Nigeria naira down 1.7 pct on OPEC decision not to cut output - dealers

Nigeria's naira fell 1.7 percent in early Friday trade to 177.25 against the dollar as markets reacted negatively to a decision of the OPEC oil exporting group not to cut crude output, dealers said.Saudi Arabia blocked calls on Thursday from poorer members of OPEC, including Nigeria, to cut output, sending oil prices plunging.Nigeria's currency touched a record low against the dollar on Wednesday, a day after the central bank devalued it by 8 percent in a bid to halt a slide in its foreign reserves -- 95 percent of which derive from oil sales.Falling...

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Saudi, UAE signal no push for OPEC oil cut

OPEC leader Saudi Arabia and fellow member the United Arab Emirates signalled on Wednesday they were unlikely to push for a major change in oil output at the group's meeting this week to prop up prices that have collapsed by a third since June.Saudi Oil Minister Ali al-Naimi said he expected the oil market "to stabilise itself eventually" after talks with non-OPEC member Russia on Tuesday yielded no pledge from Moscow to tackle a global oil glut jointly.OPEC's meeting on Thursday will be one of its most crucial in recent years, with oil having...

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Nigeria c.bank to drain 568 bln naira from bank accounts, banks scramble for funds

Nigeria's central bank on Wednesday advised banks it would drain a combined 568 billion Nigerian naira ($43 billion) from their accounts to meet the 500 basis-point hike in cash reserve requirements on private sector deposits with lenders.The planned withdrawal triggered a scramble for funds in the interbank lending market, where the cost of borrowing among banks almost doubled, dealers said.The overnight interbank borrowing rate closed at 20 percent on Wednesday compared with 10.25 percent on Tuesday.The bank central bank hiked the CRR on private...

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Nigeria overnight lending rate doubles to 20 pct after cbank action

Trading on Nigeria's almost doubled on Wednesday, after trading resumed a day after the central bank hiked the cash reserve ratio (CRR) for commercial banks to hold deposits from individuals and businesses, dealers said.Dealers said commercial lenders were scrambling for cash in anticipation of the central bank enforcing the CRR on Wednesday, so interbank rates rose sharply from 10.25 percent the previous day.Initially, the overnight market was not giving quotes on Wednesday because they were waiting for information from the central bank on when...

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Nigeria's Access Bank sees 'little' impact from naira devaluation

• Nigeria devalued currency by 8 pct this week• Devaluation likely to hit demand for bank's rights issue Nigeria's Access Bank does not expect the naira's devaluation to have a significant impact on its business as most of its dollar facilities have been loaned to clients generating foreign currencies, its chief executive said on Wednesday.Nigeria's central bank devalued the naira by 8 percent and raised interest rates by 100 basis points on Tuesday, hoping to stem losses to its foreign reserves from defending the currency against weaker oil prices....

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Nigeria cenbank lowers naira band, raises interest rate by 100 bps

Nigeria's central bank lowered the target band for the naira on Tuesday, and it raised interest rates by 100 basis points to 13 percent, as it sought to stem losses to its foreign reserves from defending the local currency.The central bank moved the band to 160-176 naira to the U.S. dollar, compared with 150-160 naira previously, owing to prolonged naira weakness and high dollar demand. The naira has taken a beating over the past few months, as falling oil prices have shaken confidence in the assets of Africa's leading energy producer. Defending...

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Nigeria central bank breaches its forex band ahead of rate meeting

Nigeria's central bank sold dollars outside its preferred currency band at its forex auction on Monday, signalling it could shift the band to weaken the naira after its policy meeting on Tuesday, dealers said.The central bank usually sells dollars at its twice weekly forex auctions at 150-160 naira, a band it adopted in November 2011 after a decline in oil prices forced it to spend billions of dollars in reserves to defend the naira.A slump in oil prices this year has pushed the naira down 10 percent versus the dollar. On Monday the Nigerian currency...

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Nigeria's overnight lending rate halves to 9.75 percent

Nigeria's overnight lending rate fell to 9.75 percent on Friday, from 18 percent at the previous close, after government monthly budget disbursals flowed into the banking system, dealers said. Liquidity had dried up after pension funds snapped up bonds before an expected central bank ruling on naira cash reserve ratios on Tuesday that it hopes will tighten liquidity to support the currency. The naira has lost 10.5 percent this year. It has been under particular pressure in the past two months as falling oil prices sapped appetites for assets...

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Nigeria's bond eyes rate setting policy meeting

Nigeria's debt market is expected to take its next direction from the outcome of the central bank's rate-setting Monetary Committee meeting scheduled for early next week.     Traders said they were cautious since the committee could take measures to support the flagging local currency, including a possible hike in cash reserves requirements.     The committee will meet for two days from Nov. 24, against the backdrop of a steep drop in the price of crude oil that has put significant pressure on the naira currency.    ...

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Nigeria to lower oil benchmark for budget as crude falls

Nigeria to revise oil benchmark lower to $73 per barrel Oil price fall will impact revenues, expenditure - Fin Min Minister rejects calls to print more naira  Nigeria plans to lower its assumed benchmark oil price for next year's budget by $5 per barrel to $73 and use reserves to meet ongoing government spending, its finance minister said on Sunday. Ngozi Okonjo-Iweala said a six percent drop in oil revenues following a world crude price decline would require the government to cut non-essential spending and raise more revenue. She said...

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Nigerian interbank rate up 287 bps as cbank supports naira

Nigeria's overnight interbank lending rate jumped 287 basis points to 10.87 percent on Friday as the central bank mopped up liquidity via treasury bill sales to ward off pressure on the naira, dealers said.The naira currency has come under pressure over the past two months from falling global oil prices, dampening appetite for assets in Africa's biggest economy and chief oil exporter.Though the central bank has been intervening this year to prop up its value, the naira has lost 7.2 percent since Jan. 2.The bank sold more than 200 billion naira...

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Nigeria's naira trading outside cbank's band despite interventions.

Nigeria's naira firmed 0.88 percent on Friday, after the central bank stepped up dollar sales to try to support the currency, under pressure as the price of oil, the country's main revenue earner tumbled to a four-year low.Howevrr, although the central bank has spent billions of dollars this week in interventions, the naira is still worth 2.7 percent less against the dollar than when the week started and remains outside the bank's preferred trading band.In the latest session, the unit had initially weakened to 173.77 naira against the greenback,...

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Nigeria stocks rise for third day as local funds buy shares

Nigeria's index rose for the third straight session after a 12-day sell-off, as domestic investors snapped up relatively cheaper consumer and oil and gas stocks dumped by foreign funds, stockbrokers said on Wednesday.Foreign investors, who dominate trades on the Nigerian bourse, have been pulling money out after the price of oil collapsed and the naira currency weakened. Brokers said the sell-off drove stocks to new lows, which spurred buying interest from local pension and retail investors. The all-share index had climbed 0.84 percent to 33,951...

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Nigeria consumer inflation eases to 8.1 percent y/y in Oct

Inflation dips in Oct on lower food prices CPI still within cbank target band of 6 to 9 percent Nigeria attracted $6.5 billion in foreign investments in Q3  Nigeria's consumer price inflation eased for the second consecutive month to 8.1 percent in October, from 8.3 percent the previous month, driven by lower food prices, the statistics bureau said on Sunday. Food prices, the biggest contributor to headline inflation, declined to 9.3 percent last month, down from 9.7 percent in the previous month. "In October, the pace of increase in...

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Nigerian stocks, bonds slide as foreign investors exit

Nigeria's main stock index fell 11.52 percent in one week to 33,225 points as naira worries and oil price risk unnerved foreign investors, the major buyers of local shares.Yield on Nigeria's 3-year bond fell 64 basis points on Friday as local pension funds snapped up debt from exiting foreign investors.Foreign investors, who dominate stock and bond trades in Nigeria, have continued to pulled money out of the country's financial markets after the oil price, which had dropped to a new four-year low below $82 a barrel on Wednesday, steadied around...

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Higher liquidity to spur demand for Nigerian bonds

Increased money market liquidity after the central bank capped the amount of idle cash that banks can deposit with the regulator will drive demand for bonds by local investors, helping to offset a sell-off by foreign funds.Nigerian assets have taken a beating in recent weeks on the back of a drop in the price of crude oil. In a bid to force banks to lend to the productive sector and stimulate economic growth, Nigeria's central bank restricted lenders and discount houses from placing more than 7.5 billion naira each as deposits with the regulator.This...

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Nigerian interbank rates at three-year low on new central bank rules

Nigeria's interbank lending rates slipped to a three-year low after the central bank announced a restriction on the volume of idle cash that banks can place with it, traders said.The central bank on Thursday restricted lenders and discount houses from depositing more than 7.5 billion naira ($45.25 million) each, increasing interbank naira liquidity.Interbank lending rates closed around 8 percent across the board on Friday, 2.2 percentage points lower than last week's 10.2 percent.Dealers said many banks were taken aback by the new limit on central...

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Nigerian naira gains 2.3 pct as central bank sells dollars

Nigeria's naira rose 2.35 percent against the U.S. dollar on Friday after the central bank sold dollars to prop up the value of the local currency.The naira closed at 165.90 to the dollar compared with 169.90 to the dollar the previous day.The naira had touched new intraday lows of 173.02 on Friday amid demand for dollars, partly from foreign investors unnerved by falling oil prices exiting Nigeria and partly from domestic importers worried about the risk of a currency devaluation.Dealers said the central bank sold undisclosed amount of dollars."We...

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Africa's richest man targets Nigeria's rice deficit

Nigeria enjoys a perfect rice-growing climate over a vast area yet it is the world's second biggest importer of the staple, often from countries in its warm, wet tropical latitude like top exporter Thailand.It's one of those baffling Nigerian paradoxes, like the fact that it is Africa's top oil producer yet suffers frequent fuel shortages; or that it is sitting on the world's eighth largest gas reserves but can only produce a few hours of power a day.As with the other bottlenecks holding back Africa's biggest economy, decades of bad governance...

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Nigerian markets fall, central bank intervenes as weak oil price pressures naira

• Foreign investors exit Nigeria assets on naira concerns • Main stock index down 1.6 pct at 36,744 points • Stocks down 9.6 pct this year as investors exit • Naira down 4.3 pct in 2014, unnerved by falling oil price   Nigeria's main share index hit a 13-month low and government bonds fell on Tuesday as foreign investors pulled out of Nigerian assets, prompting the central bank to sell dollars to support the ailing naira.     Nigeria's currency has come under pressure in the past two months from falling global oil prices, dampening...

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Oil hits four-year low near $82 after Saudi Arabia cuts U.S. prices

Brent crude oil fell to a more than four-year low near $82 a barrel on Tuesday, after top oil exporter Saudi Arabia cut sales prices to the United States.     Front-month Brent crude touched a low of $82.08, its weakest since October 2010, and was down $2.10 at $82.68 a barrel by 1030 GMT.     U.S. light crude <CLc1> was down $2.20 at $76.58 a barrel. It touched a session low of $75.84, its weakest since October 2011, as its discount to Brent hovered around $6.     The Brent price plunged more than 50 cents below...

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Nigerian naira falls on low supply of dollars

Nigeria's naira slipped against the dollar on the interbank market on Monday, driven by tight supplies of the U.S. currency and sustained strong demand from offshore investors selling their equity holdings.The local currency closed at 165.75 to the dollar, compared with 165.65 on Friday.A unit of Addax sold $10 million to some lenders, Eni sold $2 million while Royal Dutch Shell sold an undisclosed amount of dollars. But aggregate dollar flows were seen as insufficient to support the local currency."Many offshore investors in fixed income assets...

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