Nigeria’s sovereign dollar-denominated bonds experienced a significant increase as international investors reacted positively to the suspension of Central Bank Governor Godwin Emefiele. His tenure saw multiple exchange rates that failed to maintain a strong naira. The country’s eurobonds prices surged, with many issues reaching their highest values since late January.
Longer-dated maturities, such as the 2049 maturity, witnessed the largest gains, according to Tradeweb data. Nigeria is currently grappling with severe dollar shortages, leading many individuals to turn to the black market for foreign currency, where the naira trades at a much lower rate compared to its official exchange rate.
Barclays economist Michael Kafe said in a note to clients on Monday that the suspension of the Central Bank chief signals “a new era of focused, predictable monetary policy and a shift…
