The bonds would be priced in the likes of South Africa rand, Botswana pula, Nigerian naira
, Ugandan shilling or Zambian kwacha rather than the U.
Once, extremely fragile currencies as diverse as the Algerian dinar, Nigerian naira
, Tanzanian shilling, Mozambique metical, Zambian kwacha and many others, provided a one-way bet for traders.
The Board of Governors of the African Development Bank Group (AfDB) through its private sector window approved on Wednesday, October 1 a USD 12 million line of credit (LOC) equivalent in Nigerian Naira
(NGN) to LAPO Microfinance Bank (LAPO MfB) in Nigeria.
Politics can also be volatile, as we saw in the Egyptian pound, the Nigerian naira
, Pakistani rupee and Vietnamese dong.
Surging crude oil prices are beneficial for the Saudi ryal, Mexican peso, Venezuela bolivar, Norwegian krone and Nigerian naira
The Nigerian Naira
issuance confirms the AfDB s commitment to launch more local currency bonds across the continent, with proceeds used to provide local currency loans to the Bank s clients.
The Nigerian naira
remains overvalued despite its 7% devaluation in mid-January, and a fall to N90-95:$1 in the absence of the Central Bank's intervention, may be expected.
According to the AfDB, the funds will be drawn in multiple African currencies that include the Ghanaian Cedi, Nigerian Naira
, the Kenyan Shilling, the Zambian Kwacha, the Mozambican Metical and the Tanzanian Shilling.