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Dollar bonds of Nigeria rose by over 3-4% across the curve after the surprise ousting of its central bank governor Godwin Emefiele for “investigative reasons”. Folashodun Shonubi, a deputy governor has taken charge in an acting capacity. Market participants saw the move as a positive update, away from unorthodox policies that involved allowing a complex regime of multiple exchange rates. Several investors and institutions including the World Bank have been critical of its multiple exchange rate policies to manage demand, restrain pressure on the naira and conserve its diminishing reserves. This policy has fueled a black market for the currency that trades much lower than the spot currency rate. Besides, analysts have also criticized the central bank for loaning the government of the former President NGN 22.7tn ($49bn), that saw public debt soar to a massive NGN 77tn ($170bn).
Nigeria’s 7.375% 2033s were up over 2.5 points to trade at 76.6, yielding 11.27%
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