SUSPENSION OF CENTRAL BANK GOVERNOR PAVES WAY FOR NIGERIA EUROBOND RISE
The price of the West Africa Oil Producer’s eurobonds rose today as much as 2.6cents in dollar before moderating slightly with many issues reaching their highest prices since late January.
This dollar denominated bonds rose sharply as overseas investors welcomed the suspension of the central bank governor, Godwin Emefiele, who allowed multiple exchange rates that failed to keep the naira strong.
This eurobond’s rise, longer dated maturities, saw biggest gains with the 2049 maturity up 2.353 cents to 80.231 at 07: 46 GMT, according to Tradeweb data.
Barclay’s economist , Micheal Kafe in a note to clients on Monday about the suspension of the Central Bank chief maintained that” We believe the changes signals a new era of focused, predictable monetary policy and shift towards non- interventionism in the foreign exchange regime”.
