Woo hoo Eurobonds

  Finally some good news. The $1bn Eurobond sale was successful. It was almost 8 times oversubscribed with orders up to $7.8bn (we will still take only a $1bn). At 7.875% it is a lot lower than the 8.5% that was the initial target, although still a bit high. Especially considering returns elsewhere. You literally… Continue reading Woo hoo Eurobonds

Naira struggles: The missing 42nd item

  So just to recap, we have the raw materials, the skills, and the market, and if we stopped importing fuel our foreign exchange crisis might be over. If the central bank really believed that banning products from the official markets really led to local production of that product, then why isn’t fuel on the… Continue reading Naira struggles: The missing 42nd item

Sounds like something from the cold war

“Intelligence reports at the disposal of the bank reveal the involvement of some unpatriotic elements funding the push to have the Central Bank of Nigeria and the federal government reverse its foreign-exchange policy,” Isaac Okorafor, a spokesman, said in a statement on the Abuja-based central bank’s website. “Self-centered individuals, who have failed to assail our… Continue reading Sounds like something from the cold war

The political economy of BDCs and black market premiums

We seem to fall into a recurring cycle of bad policy with regards to the foreign exchange market. It is possible that policy makers implement bad policy by accident. However it is also possible that policy makers implement bad policy by design. Could bad policy in the foreign exchange market be the result of political… Continue reading The political economy of BDCs and black market premiums