Nigeria's international dollar-denominated bonds fell on Wednesday, after the president's spokesman said petrol prices did not need to rise more, and blamed foreign exchange shortages on 'gross mismanagement' at the central bank.
JOHANNESBURG, Aug 16 - Nigeria's international dollar-denominated bonds fell on Wednesday, after the president's spokesman said petrol pricesto rise more, and blamed foreign exchange shortages on "gross mismanagement" at the central bank.
President Bola Tinubu axed a popular but costly petrol subsidy on coming to power in late May and soon after devalued the naira currency, both moves long demanded by investors, driving a rally in Nigeria's overseas bonds that peaked at the start of August. "This may signal a return of gasoline subsidy, which would be read very negatively by bondholders," Ayodeji Dawodu of investment bank BancTrust said in an emailed note.
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