On Wednesday, August 15, Nigeria's Eurobonds witnessed a significant drop after the Federal Government announced the hike in the price of petroleum and also laid the blame on shortages of foreign exchange which is termed "gross mismanagement" at the Central Bank of Nigeria (CBN).
The 2051 maturity bonds saw a significant drop of as much as 1.7 cents on the dollar to 68.894 cents. This decrease has been the lowest since June 2, before recovering to trade 0.57 cents lower.
The increase in fuel prices has been a result of the removal of fuel subsidy which Bola Tinubu alerted on his day of inauguration which caused the devaluation of the naira which were long demanded by investors thereby drifting in Nigeria's overseas bonds that rose increasingly at beginning of August.
Nigeria's reliance on fuel importation has been suffering a serious loss in dollar shortage and petrol retailers have been calling for a hike in the price of fuel due to the dip that has been occurring in exchange rate which has made fuel even more expensive due to importation.
Read more: https://www.investingport.com/niger...-market-losses-as-fg-stops-petrol-price-hike/