- CBN Official: Gamblers will lose their money
By Obinna Chima
Meanwhile, an official of the CBN who pleaded not to be named has warned speculators that they will lose their money as the country’s foreign reserves continue to rise.
Speaking in a phone interview, the President, Association of Bureau de Change Operators of Nigeria (ABCON), Mr. Aminu Gwadabe, also blamed the further drop in the value of the naira on the black market on the activities of currency speculators.
“The central bank also told us recently that it was working on reducing the requirements for International Money Transfer Operators (IMTOs), so that there would be improved liquidity in the economy. We have a lot of Nigerians in the Diaspora and licensing more IMTOs would help improve dollar flows into the country,” the ABCON boss added.
Nigeria’s forex reserves is currently at $28.699 billion. The federal government on Thursday announced that its US$1 billion Eurobond was 780 per cent oversubscribed, demonstrating a strong market appetite for Nigeria.
The government also revealed that the newly established US$1 billion Global Medium Term Note programme will bear interest at a rate of 7.875 per cent and will mature on 16th February 2032, with a bullet repayment of the principal.
Nonetheless, the yield of 7.875 per cent on the $1 bil- lion Eurobond showed that investors priced in the risk of the credit downgrade by Fitch recently. Nigeria intends to use the proceeds of the notes to fund capital expenditure in the 2016 budget.
The Director of Information in the Ministry of Finance, Mr. Salisu Na’inna Dambatta said: “The development was clearly a sign of renewed confidence in the economy which has been hurt by the slump in crude oil prices.”
The notes, according to a statement represented the country’s third Eurobond is- suance, following issuances in 2011 and 2013.