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Nairaland Forum / Nairaland / General / Politics / FG Responds To JP Morgan Delisting Of Nigeria From Bond Index (28595 Views)
FG Responds To Call For Petrol Price Increase / Delisting Of Nigeria - No Greek Gift From J.P. Morgan / Breaking!! See Effect Of JP MORGAN Delisting On Stock Market Today- LIVE!! (2) (3) (4)
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Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by money121(m): 12:11pm On Sep 09, 2015 |
Ok |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by passionate88: 12:11pm On Sep 09, 2015 |
SenseiX:No b small body odour 6 Likes 1 Share |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by futureniyi: 12:12pm On Sep 09, 2015 |
JP Morgan is doing what is best for its investors, Nigeria should also do what is best for its citizens. Economics of a nation should not be dictated by people who are seeking fast capital gains. Top 20 Most Brutal Dictators in Africa 8 Likes 2 Shares |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by anonimi: 12:16pm On Sep 09, 2015 |
boujaye: ................by mouth action only ![]() ![]() www.nairaland.com/attachments/2611317_babamouthaction_jpega1638df5872892ac8b0fd1d92605145b 8 Likes 4 Shares |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by paranorman(m): 12:17pm On Sep 09, 2015 |
I am with the central bank on this. Protect our interest first, every other thing follows. We are one strong nation, we will survive. There's light at the end of the tunnel. If light no dey there, we go hold touch-light. 7 Likes 1 Share |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by MKO4ever(m): 12:21pm On Sep 09, 2015 |
SenseiX:I don't see any major big deal in this If this is true, then the worst that can happen is when the foreign holdings is sold off 100% and with foreign exchange reserves sitting at US$31.1bn I will expect the CBN to use part of the reserves to meet any immediate demand for forex resulting from the foreigners selling their bonds. And as such, there should not be any major sell-off in the currency that will now further tighten the liquidity in the system 4 Likes |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by PassingShot(m): 12:21pm On Sep 09, 2015 |
SenseiX:An extract from the report: JP Morgan’s decision to phase Nigeria out of its index which many investors track, marked the conclusion of a process initiated in January, Reuters reported. 2 Likes 1 Share |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by CallPolice: 12:23pm On Sep 09, 2015 |
How does it affect the price of garri in the market? Nonsense |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by sparkwil(m): 12:27pm On Sep 09, 2015 |
SenseiX: Fear not Have u forgotten so soon baba promised to stabilise world oil price ![]() In the fullness of time, his body language will re-enlist Nigeria into the bond index ![]() 8 Likes 1 Share |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by anwo247: 12:27pm On Sep 09, 2015 |
SenseiX: Body odour 1 Like 1 Share |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by Nobody: 12:27pm On Sep 09, 2015 |
CSTR2:I demand you write 5 pages of apology to those countries you just mentioned that we are better than. 2 Likes 1 Share |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by PAINGAIN: 12:28pm On Sep 09, 2015 |
PassingShot:I have seen that ur main concern about any bad news concerning nigeria is that u always ok with it so far as d blame goes to gej. Smh. 9 Likes |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by atlwireles: 12:36pm On Sep 09, 2015 |
Body language is gradually meeting its limitation. 5 Likes |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by Abbeyme: 12:37pm On Sep 09, 2015 |
Great thoughts superstar1: I love this spirit... JP Morgan should not remote-control our economy.. They didnt exist for us...We shouldnt exist for them. Live and let live, jare 6 Likes |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by PassingShot(m): 12:38pm On Sep 09, 2015 |
PAINGAIN:I only brought out an extract from the report and this is all you have to say? Am I surprised? Not at all. It's only clueless people that will fail to understand that for JP Morgan to delist a country from its Bond Index it must have taken painstaking efforts of many months of observing, studying and warnings. |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by BraniacX(m): 12:39pm On Sep 09, 2015 |
SenseiX: HEAR HEAR!!!! While i want buhari to fail, i want Nigeria to succeed, if the price of Nigeria succeeding is buhari succeeding, then so be it! The handwriting is on the wall already...........................mene mene, tekel pasin Buhari you're been weighed Buhari you're been measured Buhari so far so ![]() ![]() |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by PassingShot(m): 12:40pm On Sep 09, 2015 |
boujaye:From the report: JP Morgan’s decision to phase Nigeria out of its index which many investors track, marked the conclusion of a process initiated in January, Reuters reported. |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by Nobody: 12:41pm On Sep 09, 2015 |
tougher times ahead... |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by atlwireles: 12:41pm On Sep 09, 2015 |
SenseiX: Nigerians thought issuing orders with immediate effect stimulates economic growth and job creation. It least for once this generation will see the other side. Maybe, just maybe they will all learn something after the dark years ahead. 3 Likes |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by BraniacX(m): 12:45pm On Sep 09, 2015 |
Trailblazer1: You're joking right? ![]() 1 Like |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by eaglechild: 12:45pm On Sep 09, 2015 |
This is what you get when an illiterate dullard who has absolutely no clue about governance is hoisted on the country. In 100 days Nigeria has lost all its progress in every sector. Nigeria was listed in 2012 under GEJ and in January following anxiety on the upcoming elections stemming from violent open threats made by the dullard we were placed on a watch list. Now the elections are over, The world has been watching and there is no internationally acclaimed economic team they can relate with, no likes of Okonjo they can negotiate with. They do not understand the politics of putrid body odour aka body language, they work based on concrete policies and institutions and this slow snail in Aso rock who got F9 in most of his papers does not comprehend this simple fact. He is busy chasing rats while the economy is in flames. JP Morgan had no choice. This is just the beginning, if this snail of a president does not act fast then nothing will be left of our economy. 14 Likes 2 Shares |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by Krucifax(m): 12:47pm On Sep 09, 2015 |
I understand the decision of JP Morgan however I support the decision of the CBN. JP Morgan an investment bank lists 1. Lack of liquidity. 2. Poor transparency 3. Forex uncertainty as their official reasons for delisting Nigerian government bonds. However the biggest reason is "lack of liquidity". Understand that an investor's interest and the interests of the local economy are not always similar. Liquidity means availability of cash/funds. If there is a lot of liquidity the value of the local currency drops. It also makes the assets of the local economy cheaper. This favours a foreign investor as his dollars gets more for less. However this does not favor the local people or economy as in effect they are losing value. The decision of the CBN to implement currency controls is very good wisdom. It is to protect the currency from a damaging devaluation. There are obvious side effects but they are temporary as the CBN has to show foreigners we are not some fly spick African nation like Zimbabwe or Uganda who allowed foreign speculators to turn them into countries where you take a bag of money to buy a loaf of bread. 14 Likes 1 Share |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by PassingShot(m): 12:48pm On Sep 09, 2015 |
CSTR2:Learn to read and comprehend. This extract is from the same report: JP Morgan’s decision to phase Nigeria out of its index which many investors track, marked the conclusion of a process initiated in January, Reuters reported |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by atlwireles: 12:48pm On Sep 09, 2015 |
JPMorgan Chase & Co. has excluded Nigeria from its local-currency emerging-market bond indexes tracked by more than $200 billion of funds, after restrictions on foreign-exchange transactions prompted investor concerns about a shortage of liquidity. The first phase of removing Africa’s biggest economy from the Government Bond Index-Emerging Markets, or GBI-EM, will take place at the end this month followed by a full exit by the end of October, the New York-based lender said in a statement sent to Bloomberg on Tuesday by spokesman Patrick Burton. Nigeria’s central bank under Governor Godwin Emefiele introduced several foreign-exchange trading restrictions from December to stem the drop of the naira amid weaker oil prices. The country is Africa’s largest producer of crude, which accounts for about 90 percent of exports and two-thirds of government revenue. JPMorgan placed Nigeria on index watch in January, saying the foreign-exchange measures made it more difficult for foreign investors to replicate the gauges. Currency Reaction The country will “lose a significant chunk of regular portfolio inflows,” Gareth Brickman, a market analyst at ETM Analytics NA LLC in Stamford, Connecticut, said in a e-mailed note on Wednesday, estimating that more than $3 billion of Nigerian bonds will need to be sold. “The pressure will most certainly be back on the bank to allow the official naira rate to be at a lower, more sustainable level. Whether this comes with a more liberalized foreign-exchange regime is now anyone’s guess.” Nigeria will not be eligible for re-entry for at least 12 months from the date of exclusion, JPMorgan said. The country has a 1.5 percent weighting in the biggest GBI-EM index, which is tracked by $183.8 billion of funds, according to the bank. “Investors who track the GBI-EM series continue to face challenges and uncertainty while transacting in the naira due to the lack of a fully functional two-way FX market and limited transparency,” JPMorgan said in the statement. “As a result, Nigeria will be removed.” The naira weakened 20 percent to a record low of 206.32 per dollar in the year through Feb. 12. Extra curbs introduced by Emefiele after that slashed trading in the interbank market and have seen the currency stabilize at an average of 198.93 since the beginning of February. “We would like to strongly disagree with the premise and conclusions upon which the decision rests,” Ibrahim Mu’azu, a spokesman for the Abuja-based central bank, said in a statement on Tuesday. Nigeria has already introduced an order-based, two-way foreign-exchange market to stabilize the naira and limit speculation, according to the statement. “Despite these positive outcomes, JPMorgan would prefer that we remove this rule; even though it is obvious that doing so would lead to an indeterminate depreciation of the naira,” Mu’azu said. Emefiele repeatedly said that Nigeria wanted to remain in the indexes and that there’s enough liquidity in the currency market for foreigners to buy and sell naira bonds. Average yields on those securities rose 11 basis points to 16.04 percent on Sept. 7, the highest among 18 countries included in the GBI-EM indexes, according to data compiled by Bloomberg. ‘Big Blow’ “This will place additional pressure on the currency and even more upward pressure on domestic yields,” Stephen Bailey-Smith, head of Africa strategy at Standard Bank Group Ltd., said by phone from London. JPMorgan included Nigeria in the GBI-EM in October 2012 after Emefiele’s predecessor, Lamido Sanusi, removed a rule that foreign buyers of naira bonds had to hold them for at least a year. Foreign holdings of the country’s local debt surged as a result to a peak of about $11 billion in 2013 before falling to $3 billion today, Samir Gadio, head of Africa strategy at Standard Chartered Plc., said by phone from London. The exclusion hurts Nigeria just as President Muhammadu Buhari, in power since May, prepares to announce his cabinet, according to Ronak Gopaldas, head of country risk at Rand Merchant Bank. Buhari said he would have ministers in place by the end of the month. “The move is a big blow to the country’s prestige and will result in negative market sentiment and capital outflows,” Johannesburg-based Gopaldas said in an e-mailed response to questions. “The performance of the currency, stock market as well as yields on the country’s debt are all expected to be adversely affected.” http://www.bloomberg.com/news/articles/2015-09-08/jpmorgan-to-remove-nigeria-from-emerging-market-bond-indexes 1 Like |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by Alphaoscar: 12:50pm On Sep 09, 2015 |
Trailblazer1: You must a glorified illiterate for you not to read where the report clearly stated that the process for delisting Nigerian from their index began since January . 2 Likes |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by baby124: 12:51pm On Sep 09, 2015 |
Doesn't the country have a big account with them, why not close that account and move the money to a country or bank which is willing to list the bond. Rather, let our own country banks have our money and list our bonds |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by atlwireles: 12:52pm On Sep 09, 2015 |
[s] Alphaoscar:[/s] You people are full of rubbish 6 Likes |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by Alphaoscar: 12:53pm On Sep 09, 2015 |
PassingShot: The wailers are only shooting themselves in the heart believing they are criticizing Buhari. 1 Like |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by baralatie(m): 12:54pm On Sep 09, 2015 |
MKO4ever:CBN present gov is not like ex cbn gov sanusi. they will not toe this path at all. |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by aribs(m): 12:54pm On Sep 09, 2015 |
SenseiX:you really can't read can you? Did you read the part that said the process started in January or you were rushing to post without thinking? This information is basically beyond your league I'd say. Why not let those who know and can discuss these implications without sounding like ignoramuses talk and you can learn? |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by appini: 12:54pm On Sep 09, 2015 |
Abracadabra... We that knows and understands the Duarian, warned the gullible ones about his lack of common sense. Now just look at where the old soldier is taking us back to. It's a pity! 2 Likes |
Re: FG Responds To JP Morgan Delisting Of Nigeria From Bond Index by baralatie(m): 12:55pm On Sep 09, 2015 |
baby124:can you list the countries because Europe is stressed |
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