The Nigerian sovereign eurobonds rose sharply after the suspension of the Central Bank governor by President Bola Tinubu.

Overseas investors received the news of Godwin Emefiele’s suspension late last week.

Early on Monday, the Nigerian sovereign eurobonds rose to 2.6 cents before finally settling at 2.353 cents according Tradeweb data.

Currently, Nigeria is facing a severe dollar shortage which is forcing many people to seek out foreign currency on the black market.

“We believe the changes signal a new era of focused, predictable monetary policy and a shift towards non-interventionism in the foreign-exchange regime,” Barclays economist, Michael Kafe, said.

President Bola Tinubu had criticised Emefiele’s handling of the Naira and monetary policy at his inauguration two weeks ago.

Read Also: Sukuk Bonds Issuance: Nigeria raises N669bn from capital market in 2 years

Tinubu, who vowed to reset the nations’ problematic economy removed fuel subsidy and promised to unify the multiple exchange rates in operation in Nigeria.

However, Folashodun Shonubi, a deputy governor has been named as the substantive head of the Central Bank.

The suspended governor is now in custody and under investigation, police said on Saturday.

In December, 2022, a court order blocked Emefiele’s arrest for suspected “terrorism financing”, saying there was a lack of evidence.

It remains unknown if the arrest at the weekend is for the same charge.

See the story of a woman who Emefiele’s cashless policy practically turned to a beggar.