FG plans to raise bond in forex – Edun

The Federal Government plans to begin the issuance of domestic foreign currency-denominated bonds from this quarter.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said this yesterday.

A Reuters report quoted the minister as speaking at a parley with business leaders in Lagos.

The government move is expected to herald domestic issuance of similar bonds by companies and sub-nationals, a plan already given provisional approval by the country’s apex capital regulator.

The sovereign domestic foreign currency issuance aligns with the government’s move to attract more forex inflows to stabilise the naira. Dollar shortages have had a significant adverse impact on the naira.

Edun told his audience that the government would seek to sell forex bonds to Nigerians at home and abroad who, “because of lack of faith in the currency, have decided to try to hold and save in dollars.”

“All the funds in the diaspora, we are targeting them. There are all these funds that you have brought into your (local foreign currency) accounts, we are targeting them,” said Edun.



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