According to the report, “Nigeria’s sovereign-risk premium jumped the most in three months after Moody’s Investors Service downgraded the country deeper into junk.
“Bloomberg said Nigeria’s 2032 bonds jumped 56 basis points to 12 per cent, also the most since October.
Forward contracts on the currency traded 28 per cent weaker than the official rate on the one-year tenor, it stated.
The report showed that the latest moves threatened to send Nigeria’s credit spreads down to distressed territory, widely described as 1,000 basis points above Treasury yields as it battled slow growth, fiscal strain and a dollar squeeze.
Recently, a report by Moody, a global rating firm, downgraded Nigeria’s long-term foreign-currency and local-currency issuer ratings.