The Federal Government, through the Debt Management Office, on Wednesday announced plans to issue N500 million dollars local bonds to boost dollar liquidity. The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said this on Thursday in Lagos at an investor meeting for the bond issuance. Edun assured Nigerians that the economy was on the trajectory of growth, adding that dollar funding was critical for the exchange rate to stabilise . According to him, in terms of investments and stabilising the economy, it is important to have adequate foreign exchange. He said that though there had been improvements in the flow of foreign exchange into the economy, the dollar denominated bond would further boost FX liquidity. He said that this transaction was aimed at improving the external reserves and supporting the exchange rates, which were critical elements of stabilising the economy and preparing it for investment and growth. 'The flow of dollars has improved into the economy from portfoli o investors, from foreign direct investment and from multilateral mobilisations, which have bought into the government's macroeconomic reforms. 'This transaction plays an important role in this process because we have a domestic issuance of dollar bonds aimed at further improving the inflow of dollars. 'The more the foreign exchange, the higher the foreign reserves, the stronger would be the exchange rate. That gives a chance for inflation to come down. 'The lower the inflation, the lower the exchange rate,' he said. Edun said that the economic reforms started by President Bola Tinubu were already yielding fruits. According to him, the economy is showing signs of recovery. Output is growing, the exchange rate is stabilising. 'Government revenues and government expenditures are totally revamped, rejigged and technology has been put in place to ensure that what belongs to the government is collected diligently. 'There are efforts to ensure that government expenditure is carried out in a way that engender s public trust, visibility, transparency and accountability,' he said. He also said that the all important trade balances were now positive and growing. Mr Gbadebo Adenrele, the Managing Director - Investment Banking, United Capital Plc, the lead advisors for the transaction, said that the target for the transaction was 500 million dollars. According to Adenrele, the transaction will be for a period of five years. He said that the proceeds would be for key sector investments to be determined by the government. 'This is the first issuance that would be done in dollars. Coupon payment is semi-annually while the bullet repayment would be after five years. 'The proceeds will be invested in some key economic sectors to be approved by the president, subject to appropriation by the National Assembly. 'The minimum subscription is 10,000 dollars, with subsequent subscriptions of 1,000 dollars thereafter. 'It is backed by the full faith and credit of the Federal Government of Nigeria,' he said. He said that th e offer was open to Nigerians who resided within and outside the country, as well as institutional investors. The Director-General of DMO, Patience Oniha, said that the offer of dollar denominated local bonds would make history for the financial market and for Nigeria as a whole. Oniha said: 'Over the years, we have seen the domestic financial market transform. 'This is due to the efforts of several stakeholders in collaboration with the Federal Government.' She encouraged Nigerians to take advantage of the opportunity and invest in the dollar denominated FGN bond, adding that it was safe and secure. Source : News Agency of Nigeria