The Nigerian currency, Naira, has surged by 4.8% against the US dollar, marking its highest gain since July 22.
This significant appreciation comes after the successful sale of the country’s debut domestic dollar bond, which attracted $900m in subscriptions.
The Naira closed at 1,558 per dollar and this is its strongest level since August 21.
The bond sale has boosted investor sentiment, contributing to the Naira’s recent strength against the dollar.
The $500m domestic FGN US Dollar Bond, with a five-year maturity and a 9.75% coupon, is part of a $2bn bond program registered with the Securities and Exchange Commission.
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Proceeds from the bond will be directed towards critical sectors of the economy, as approved by President Bola Ahmed Tinubu.
The success of the bond issuance is seen as a key milestone in Nigeria’s efforts to promote financial inclusion and deepen economic growth.
The broad spectrum of investors, including local and diaspora Nigerians, as well as institutional investors, demonstrates confidence in the country’s economic prospects.
