Nigerians’ sovereign dollar-denominated bonds experienced a substantial rise on Monday.
Overseas investors responded positively to the recent suspension of central bank governor Godwin Emefiele, who was responsible for implementing various exchange rate that aimed at keep the naira strong.
The Nigeria’s Eurobond experienced a notable increase in price, surging up to 2.6 cents in the dollar. Although the prices later stabilized to some extent, with several bond issues reaching their highest levels since late January.
According to Reuters. Longer-dated maturities saw the biggest gains, with the 2049 maturity up 2.353 cents to 80.231 at 07:46 GMT, according to Tradeweb data.
The recently elected President, Bola Tinubu, expressed dissatisfaction with Emefiele’s management of the national currency and monetary policies during his inauguration two weeks ago.
Investors may not have to wait much longer for the much-expected unification of the exchange rates which Tinubu promised during his inauguration day speech on May 29.
As a result, the governor has been detained by the Department of State Services (DSS) for investigative purposes, according to a statement made by the police on Saturday.
Emefiele’s suspension had been anticipated following significant criticism from Tinubu’s faction prior to Nigeria’s presidential election in February. The accusations made by the camp included claims that the governor was intentionally undermining their campaign through a swap of old naira banknotes, leading to cash shortages that caused public discontent.
Folashodun Shonubi, the deputy governor responsible for operations at the central bank, has assumed the position of acting governor.
The announcement of Emefiele’s suspension on Friday led to the closure of Nigeria’s financial markets. Following a public holiday on Monday, the markets are scheduled to resume operations on Tuesday.
When the markets reopen on Tuesday, it is anticipated that both the stock and foreign exchange markets will mirror this trend and experience gains.
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