01886cas a2200241 a 4500 AALejournalIMF020976 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513545370 1018-5941 BD-DhAAL BD-DhAAL Hosny, Amr. Non-Resident Holdings of Domestic Debt in Nigeria : Internal or External Driven? / Amr Hosny. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (21 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Foreign holdings of domestic debt instruments in Nigeria have been increasing. Using data over 2007M1-2019M1, we show that, on average, global factors (global interest rates, oil prices) seem to carry more weight than domestic factors (treasury bills rate and domestic risk) in foreign portfolio invetsors' decisions in Nigeria. Specifically, we show that foreign participation is, in the long run, positively correlated with oil prices and profitable rates of return on local-currency instruments, but negatively correlated with exchange rate depreciation pressures. In the short run, oil prices, opportunity cost of funds and perception of Nigeria-specific risks also play a role. These results highlight the volatile short-term nature of such flows and call for a package of policy reforms to attract longer term direct investments. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2020/063 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/063/001.2020.issue-063-en.xml IMF e-Library