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Tanzania relaxes forex rules to draw foreigners to bonds
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Moneyweb
Until now, only Tanzanians abroad and nationals of the Southern African Development Community and the East African Community could invest in Tanzania’s domestic market.
The central bank will publish the yield curve daily to give investors a benchmark for pricing loans and corporate bonds.
“One of the expected benefits of this yield curve is that it will bring more foreign investors into our market,” Tutuba said.
The main attraction of local-currency bonds in frontier markets is the relatively high yields they offer, attracting strong bids from foreigners.
In neighbouring Zambia, foreigners have piled into the local bond market after the government lifted in January a cap on non-resident participation in debt auctions.