By Capital Watch Media
The Debt Management Office (DMO) will today auction three tranches of Federal Government of Nigeria (FGN) bonds worth N450 billion, while the Central Bank of Nigeria (CBN) is set to officially launch the Nigerian Foreign Exchange (FX) Code.
Meanwhile, the naira is expected to remain stable in the N1500 region, with analysts projecting further appreciation based on the success of recent reforms.
The Debt Management Office will be issuing three tranches of FGN bonds worth N450 billion today.
The issuance includes the reopening of a five-year N100 billion bond, a seven year bond, valued at N150 billion and a new 10-year bond worth N200 billion.
At the last auction in December, DMO sold N51.86 billion worth of the Apr 21 (five-year bond), less than the amount offered.
While on its longest tenure Feb 31s (reopened seven-year bond), it sold N159.29 billion, more than double its offer in the December FGN bond auction.
On the debt front, the government will likely borrow about N9.16 trillion from the domestic market.
Considering these factors, CardinalStone projects a moderation in yields later in the year as the CBN is likely to retain some low liquidity tolerance from the context of ensuring rollovers, and a lower borrowing compared to 2024 assuming the issuance of N2.0 trillion in dollar-denominated bonds, leaving a balance of N7.16 trillion to be a split of NTB and bonds
Tuesday January 28
CBN to launch Nigerian Foreign Exchange (FX) Code
The Central Bank of Nigeria (CBN) is set to officially launch the Nigerian Foreign Exchange (FX) Code on Tuesday. The FX Code is designed to provide ethical guidelines for authorised dealers in the Nigerian FX market, promoting responsible market conduct.
The CBN has scheduled the official launch for Tuesday, January 28, 2025, at its head office auditorium in Abuja. This launch follows the CBN’s ongoing efforts to strengthen governance and transparency in the FX market, including the introduction of updated guidelines in November 2024.
A major aspect of the revised guidelines requires the boards of banks, along with their Chief Executive Officers (CEOs) and Chief Compliance Officers, to annually attest to their adherence to the Nigeria FX Code of ethics and conduct. This attestation serves as a commitment to maintaining market integrity and complying with all CBN regulations.
These revised guidelines aim to further develop Nigeria’s FX market, particularly after the consolidation of all official FX market windows. The circular issued by Omolara Omotunde Duke, director of the CBN’s financial markets department, replaces earlier directives, including the operational changes from June 14, 2023, and other previous circulars dating back to 2017.
Under the new framework, authorised dealers are required to facilitate FX transactions for both businesses and individuals while ensuring full compliance with regulations. Dealers must conduct proper due diligence, offer transparent pricing, and provide access to the market via digital solutions. Additionally, all legitimate FX transactions must occur exclusively through authorised dealers, with transactions through unlicensed intermediaries strictly prohibited.
The new guidelines also apply to Bureaux De Change (BDC) operators. Licensed BDCs can purchase FX from authorised dealers to meet customer demands, within the limits set by the CBN. Similarly, all FX transactions conducted by BDCs, International Money Transfer Operators (IMTOs), and authorised dealers must comply with their licenses and the Nigeria FX Code.
