Nearly a billion dollars in naira Treasury bills are to be in play to settle Nigeria’s finances once again to encourage foreign investment, as well as secure its national economy.
The nation of Nigeria has planned to move up its store of currency by 245.18 billion naira or roughly €690 million in Treasury bills with an array of maturation from as little as three months on up to as many as twelve months. On Tuesday, August 3rd, referencing a Treasury bill calendar of the national central banking institution traders understood.
According to Timeslive the Nigerian central bank intends to release more than 45 billion naira during a three-month span to overcome debt, with 80 billion naira being handed out over a six-month timetable, and 120 billion naira in twelve-month bills heading off to an auction held by the Dutch.
The Dutch have been involved in African currencies for quite some time. Many investors view this as a kind of guilt removal for having been partially involved in the damaging of the continent and various African peoples. While others view it as a way to simply make some money off the less fortunate by flooding their banks with a stronger currency. Which is likely to strengthen a donors’ currency as well; after all a currency that is traded and used is definitely worth more than one that is not.
The analyzed ratings of the impending auction appear to stand at 16 percent for a fiscal quarter, while 18 percent is outlaid for half of the fiscal calendar, and 18.5 percent is indicated for twelve-month bills, according to one trader. The results of the auction are to be made available the following day after all the trades have finalized.
The outlook of the yields of the fixed income securities had been going up every month currently as the central bank has been attempting to clean up the naira’s debt-paying ability in order to draw in again investors from abroad who had rid themselves of naira assets immediately after the price of Nigeria’s greatest product, oil, took a hit in the global economy.
The global economy took such a dive as a result of both Russia and Saudi Arabia attempting to throttle their reserve oil and petroleum allotments in an effort to hurt the United States’ oil production sector, unfortunately, many other nations such as Nigeria were hurt as well in the wake of the price adjusting scheme.
Additionally, the central bank of Nigeria also raised interest rates on a magnitude of 200 basis points the previous week by 14 percent to assist in the wrestle with inflation. Recently, inflation had peaked at a ten year high of 16.5 percent in the month of June.
The bank, however, was not immediately on hand to provide comment any further. If you’re wondering 356.42 naira equals about 1 euro.
After this latest adjustment, the question still stands- when will African nations be able to stand on their own without the aid of foreign investments.