Central banks should be careful what they say about the future if they want flexibility to set monetary policy.
Nigerian inflation accelerated to 9.1 percent in April, while the economy expanded 6.6 percent in the first quarter, the National Bureau of Statistics said.
United Bank for Africa Plc, Nigeria’s fifth-largest lender by market value, plans to increase loans by as much as 40 percent this year to fund oil, power and manufacturing projects.
The naira rose to the highest in a month as investors brought in money to buy Nigerian Treasury bills in a central bank auction and after oil companies were said to sell dollars earlier in the week.
FBN Holdings Plc, owner of First Bank Nigeria, plans to raise $500 million by selling a Eurobond this year after abandoning a similar offering in 2012.
Stanbic IBTC Holding Co., the Nigerian unit of South Africa’s Standard Bank Group Ltd., plans to raise $150 million in new capital this year, Chief Executive Officer Sola David-Borha said.
The naira advanced for the first time in nine days as the Central Bank of Nigeria sold dollars directly to the market outside of its regular currency auctions.
The naira reached the lowest in more than a month as investors were said to slow purchases of Nigerian bonds after oil prices weakened and output in Africa’s top crude producer missed a forecast.
The naira reached its lowest in five weeks against the dollar as companies increased demand for the U.S. currency after the central bank sold less than the amount offered at an auction today.
The naira declined for a fifth day, reaching its lowest in more than five weeks on increased demand for dollars by oil importers and as the central bank cut the amount of U.S. currency sold at today’s auction.