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Nigeria’s Forex reserves fall by $1bn

By on October 2, 2015

Nigeria’s foreign exchange reserves fell 3.14 per cent to $30.48 billion by September 23 from $31.47 billion a month ago, data published by Central Bank of Nigeria showed on Wednesday.cbn

The reserves were down 23.03 per cent from a year ago, according to Reuters.
To reduce the deterioration of the reserves, the Central Bank of Nigeria has been implementing a dose of restrictions on imports of non-essentials.

Nigeria to Re-issue 10-year Bond after JP Morgan Index Expulsion
Nigeria plans to re-issue its five- and 10-year bonds in the last quarter of the year to raise up to N270 billion after JP Morgan on Wednesday delisted half of the maturities belonging to Africa’s biggest economy from its Government Bond Index-Emerging Markets (GBI-EM).

The 10-year bond, among those to be delisted on the influential index, edged higher to yield 15.09 per cent after the Debt Management Office (DMO) on Wednesday released its calendar showing it will re-introduce the benchmark paper, which was not issued in the third quarter, a report by Reuters stated.

The DMO said it will sell between N60 billion and N90 billion each in five- and 10-year bonds in each of the remaining three months of the year as re-openings of outstanding maturities.

JP Morgan removed half of Nigerian bonds listed on its emerging markets bond index (GBI-EM), as part of its month-end index rebalancing, cutting the West African country’s weight to 0.79 per cent.

Traders said bond yields were muted on Wednesday as foreign buyers had cut their exposure to 0.69 per cent ahead of the index expulsion.

The 2024 bond to be issued from October will pay a coupon of 14.20 per cent while the 2020 paper will pay 15.54 per cent.

 

[ThisDay]