🇳🇬💸💹 Nigeria’s Financial Scene Gets a Fresh Breath of Life as New Prez Kicks Fuel Subsidy to the Curb
TL;DR: 📣 New Nigerian Prez, Bola Tinubu, starts his term with a bang, vowing to eliminate the costly fuel subsidy and aiming for a unified exchange rate. Eurobonds are grinning, stocks are partying, and the naira is…well, it’s not so thrilled. Tinubu has stepped into a landmine field of challenges – record debt, forex and fuel shortages, sky-high inflation, power supply issues, and declining oil production. Hold on to your seats folks, it’s gonna be a wild ride. 🎢
🔥 Fuel subsidies? Nah fam, we don’t do that here anymore. Bola Tinubu, freshly minted as Nigeria’s President, isn’t about that life. He’s ditched the costly fuel subsidy and is looking to get the central bank on board with a unified exchange rate.💱 What’s the result? Nigeria’s sovereign dollar-denominated bonds got a serious adrenaline shot. They rallied on Tuesday, with Eurobonds joyfully hopping up as much as 3 cents in the dollar. 📈 But what’s the big deal, you ask? Well, the 2029 maturity stood at 87.25 cents by 1251 GMT, sporting a yield of 11.43% – the lowest we’ve seen since the tail-end of January. 🎉💵
So, Eurobonds and bonds are throwing a party. But what about our old pal, the naira? Well, the naira currency got sucker-punched, hitting record lows against the U.S. dollar in the forward markets. 📉💰 The three-month forward positioned itself at 564 naira to 1 dollar. But hey, every party needs a pooper, right?
And in a surprising turn of events, Nigerian stocks got their groove back, showing off with a 4% rise to a more than two-month high. 📈💹 Now that’s something you don