fbpx
Uncategorized

DMO: Foreign Investors’ Holding Hits $5bn

Following the transformation of the market by the Debt Management Office (DMO), foreign investors’ holding in the Federal Government Bonds has continued to grow, hitting $5.112billion as at the end of 2012.

Prior to the establishment of DMO in 2000, debt management operations in Nigeria were undertaken in an uncoordinated fashion by various agencies of government leading to inefficiencies and less positive impact on the economy.

However, through the transformation efforts of agency, the debt management system has improved leading to many benefits.

 According to Director-General of DMO, Dr. Abraham Nwankwo, one of the benefits, is the increase in foreign exchange inflows that had led to growth in external reserves and stability of the naira through the participation of foreign investors in bond market.

Nwankwo disclosed that as at the end of December 2012, foreign investors’ holding in FGN securities amounted to $5.112 billion, compared to about $500 million as at the beginning of 2012.

He added that the share of foreign investors had been rising consistently moving from 1.66 per cent as at the end of 2011 to 10.26 per cent as at the end of 2012.

This has improved to an average of 16.1 per cent and has been averaging 16.1 per cent between January and June 2013.

SOURCE

About Author

BWN
This is BizWatchNigeria. Nigeria's first online business Newspaper.

Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.