Third, the increased nonPage | 4  resident participation in the domestic bond market has exposed the economy to vulnerabilities stemming from changes in sentiments of these investors. These sources of vulnerabilities, when they materialize, can distort external sector conditions and impact adversely on economic conditions.
•  In other words, the provisioning of foreign exchange cover for repatriation of Multi-National Corporations (MNCs) dividends and non-resident investors’ coupon payments, bond maturities and energy-related debt repayments exerts significant foreign exchange pressures. For instance, one of the triggers in the recent exchange rate volatility we experienced was the early redemption and coupon repayments of foreign denominated domestic bonds.