Nigeria’s Eurobonds recorded a jump as foreign investors reacted positively to the suspension of Governor Godwin Emefiele from the Central Bank of Nigeria.
Longest maturing dollar debt rose to the highest since January.
The debts maturing in 2051 jumped over 3 cents on the dollar to 73.74 cents on Monday which is a public holiday to commemorate the country’s Democracy Day.
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Bola Tinubu, Nigeria’s President suspended Emefiele who has been accused of making policies that complicated Nigeria’s economic misfortunes.
Emefiele has loaned the Federal Government over N22.7trn through the breach of the CBN Acts that provide for ways and means.
The illegal ways and means pushed Nigeria’s debt to N77trn.
“We believe the changes signal a new era of focused, predictable monetary policy and a shift towards non-interventionism in the foreign-exchange regime,” Barclays economist, Michael Kafe, said in a note to customers.
Tinubu appointed the Deputy Governor, Operations Directorate, Folashodun Adebisi Shonubi to oversee the apex bank.
It is expected that the new regime would devalue the naira to over N600 to a dollar.
Tinubu on May 29 pledged to reform the monetary policies of the country as well as devalue the naira by unifying the different foreign exchange windows.