FG to issue foreign currency denominated bonds in June

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The Federal Government has announced intentions to launch domestic bonds denominated in foreign currency in the second quarter of this year, specifically in June. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this during a meeting with business leaders in Lagos, as reported by Reuters.

This decision is part of efforts to attract additional foreign exchange inflows and stabilize the Nigerian currency amidst persistent shortages of US dollars, which have led to a significant depreciation of the naira.

Edun emphasized that the government aims to sell forex bonds to both Nigerians at home and abroad, particularly targeting those who lack faith in the local currency and prefer to save in dollars. He noted the importance of tapping into funds held in diaspora accounts, indicating a strategy to leverage these resources to bolster the country’s foreign exchange reserves.

The delay in issuing these bonds was attributed to the government’s desire to instill confidence in its fiscal policy and garner support from investors and skeptical citizens. By offering foreign currency denominated bonds, the government seeks to address concerns about currency stability and provide alternative investment opportunities for individuals holding assets in foreign currencies.

Source: PUNCH

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