http://www.punchng.com/business/money/jp-morgan-emefiele-defends-cbn-policiessays-i-dont-know-what-the-issues-are/

The central bank governor, whose protectionist policies and management of the foreign exchange rate has alarmed analysts, said that dollar demand was still being met, although traders say liquidity has dried up.

The country’s ejection from the GBI-EM index late on Tuesday has already triggered outflows from the $2bn of local bonds the index tracks. Nigeria’s bond market regulator imposed a new spread limit on Thursday, reports said. By mid-morning on Thursday, the domestic stock market had slid nearly 3 percent to hit the biggest two-day decline in eight months.

China has been roiling global markets as its leaders try to stop a huge stock bubble from bursting and its economy from stalling

With Brent crude below $45 a barrel, “the last thing Nigeria needed was exclusion” from the index, the Chief Africa Economist at Standard Chartered Bank, Ms. Razia Khan, said.

Nigeria will be ineligible for next re-entry for 12 months. “This could well be the crunch time, because it’s when Nigeria most needs its access to markets, external borrowing, and foreign capital,” Khan added.

Some investors voiced concerns on Thursday that Nigeria could also be removed from the MSCI frontier index. But investors say the bond and equity markets sell-off is of less concern than the underlying reasons JPMorgan removed Nigeria from the index three years after the country’s inclusion boosted confidence in it as an investment destination.

The US bank cited tight capital controls introduced by the Nigerian central bank to prop up the naira as one reason for its decision. The naira officially trades near the central bank pegged rate of 197 to the dollar but on the black market has hit 240 to the dollar in recent months. On Wednesday, the naira firmed slightly to 221 to the dollar.

The protectionist policies of Emefiele and his refusal to devalue the naira again — it has already been devalued twice in the past year — have alarmed observers, as has the lack of action taken by Buhari.

“Nigeria needs to acknowledge that oil prices have fallen and that prices, including the FX, must adjust accordingly, even if it hurts in the short term. This is vastly preferable to entering a heterodox system that creates perverse incentives and results in permanent and ever-worsening distortions,” the Head of Research at Ashmore, an emerging markets-focused asset manager, Jan Dehn, said.

“Where is Buhari? Is he in control of economic policy at all?”

Ok

http://www.reuters.com/article/2015/09/10/us-iran-crude-asia-idUSKCN0RA1CI20150910


This puts Iranian Light OSP at a 15-cent premium to Saudi's Arab Light in the fourth quarter, the lowest quarterly price since the last three months of 2012, according to Reuters data.


In the fight for market share, Iran and fellow members of the Organization of the Petroleum Exporting Countries, including Kuwait and Iraq, have dangled carrots in the form of extended credit and free oil deliveries in addition to outright price cuts to increase their sales.

The central bank governor, whose protectionist policies and management of the foreign exchange rate has alarmed analysts, said that dollar demand was still being met, although traders say liquidity has dried up.

I smell arm twisting here... These people just looking for ways to indirectly control and weaken our economy.

They want their nose in everything. Shoir!

emmyrichie:


I smell arm twisting here... These people just looking for ways to indirectly control and weaken our economy.

They want their nose in everything. Shoir!

They fear loosing control! Nosey people. Every move the US makes is always to benefit themselves first.

http://businessdayonline.com/2015/09/jp-morgan-judgment-hurts-nigerian-assets-pressures-banks-capital/

JP Morgan’s phased removal of Nigeria from its GBI-EM indices of local currency government bonds for failing its liquidity and transparency tests is already putting pressure on Nigerian assets classes, as well as banks capital adequacy ratio (CAR).

But, the Federal Ministry of Finance (FMF), Central Bank of Nigeria (CBN), and the Debt Management Office (DMO) have jointly responded to the decision saying they strongly disagree with the premise and conclusions upon which the decision rests.

In a statement signed by Ibrahim Mu’azu, director, corporate communications, CBN, the apex bank said: “While we would continue to ensure that there is liquidity and transparency in the market, we would like to note that the market for FGN Bonds remains strong and active, due primarily to the strength and diversity of the domestic investor base.

“For the avoidance of doubt, the Federal Government sees Nigeria and the interest of Nigerians as paramount. It will therefore only continue to take economic decisions that will impact positively in the lives of all Nigerians.”

However, at the equities front, the recent rally halted, as sell pressure robbed equities of N239 billion in value. Likewise, analysts said deposit money banks stand to face mark to market losses, while short-term rates on investment securities is expected to see some upward bias.

Analysts expect to see mark to market losses coming through for banks, particularly those with proportionately higher investments in bonds, given the upward bias in yields.

He hasn't been in control of anything meaningful. Certain actions he has taken so far has been negative and against our economy and national unity.

nnachukz:
He hasn't been in control of anything meaningful. Certain actions he has taken so far has been negative and against our economy and national unity.

You don't understand the issue enough to comment on it.

citizenisb:
http://www.punchng.com/business/money/jp-morgan-emefiele-defends-cbn-policiessays-i-dont-know-what-the-issues-are/

The central bank governor, whose protectionist policies and management of the foreign exchange rate has alarmed analysts, said that dollar demand was still being met, although traders say liquidity has dried up.

The country’s ejection from the GBI-EM index late on Tuesday has already triggered outflows from the $2bn of local bonds the index tracks. Nigeria’s bond market regulator imposed a new spread limit on Thursday, reports said. By mid-morning on Thursday, the domestic stock market had slid nearly 3 percent to hit the biggest two-day decline in eight months.

China has been roiling global markets as its leaders try to stop a huge stock bubble from bursting and its economy from stalling

With Brent crude below $45 a barrel, “the last thing Nigeria needed was exclusion” from the index, the Chief Africa Economist at Standard Chartered Bank, Ms. Razia Khan, said.

Nigeria will be ineligible for next re-entry for 12 months. “This could well be the crunch time, because it’s when Nigeria most needs its access to markets, external borrowing, and foreign capital,” Khan added.

Some investors voiced concerns on Thursday that Nigeria could also be removed from the MSCI frontier index. But investors say the bond and equity markets sell-off is of less concern than the underlying reasons JPMorgan removed Nigeria from the index three years after the country’s inclusion boosted confidence in it as an investment destination.

The US bank cited tight capital controls introduced by the Nigerian central bank to prop up the naira as one reason for its decision. The naira officially trades near the central bank pegged rate of 197 to the dollar but on the black market has hit 240 to the dollar in recent months. On Wednesday, the naira firmed slightly to 221 to the dollar.

The protectionist policies of Emefiele and his refusal to devalue the naira again — it has already been devalued twice in the past year — have alarmed observers, as has the lack of action taken by Buhari.

“Nigeria needs to acknowledge that oil prices have fallen and that prices, including the FX, must adjust accordingly, even if it hurts in the short term. This is vastly preferable to entering a heterodox system that creates perverse incentives and results in permanent and ever-worsening distortions,” the Head of Research at Ashmore, an emerging markets-focused asset manager, Jan Dehn, said.

“Where is Buhari? Is he in control of economic policy at all?”

ALMIGHTY CHUKWU ABIAMA have started answering the prayers and cry of BIAFRANS by hitting nigeria real hard with this ecomomic mess and disgrace. Nigeria is not the only african country exporting crude oil , why is theirs in this sorry state?

Hmmmm

Nigerians are the ones killing Nigerian Economy. What were they thinking when they voted just a school cert holder as their president while they had an option of a P.HD holder. They claimed the later was corrupt but a lot of foreing investors were attracted to the country and jobs were created, economy growing. Now the saint is chasing away those investors with his clueless system of administration... what a life>>>>>>

Ngozi Okonjo-Iweala, wherefore art thou?

The best finance minister ever. I hope Mumuhammadu doesn't place another Daura secondary school cert idiot in that sensitive position

The drop in crude oil price is the main culprit

By the time Buhari will be done with Nigeria, nigeria fit be like north korea.

My only pain is that the 15 million plus mumus who voted for him have roped us into something we never wanted.

An economic team is highly important to every nation thus, we shudn't have waited this far, and still not having any in place. The daura dulllard is naturally senseless.

If only Jonadaunce saved up enough naira when oil price was good the CBN would not be forced to tighten control over the dollar instead he allowed the carting away of several billion of dollar which further strained the already depleted currency reserves.

even though to some extent I support what the cbn is doing. but at the end of the day it will a fruitless effort, if we continue importing everything and producing nothing.

West has trick us into this calamity, they always want us to be beggers, that is why they made every effort to frustrate GEJ, and foist this semi-literate dictator, whose first achievement is touring west begging for alm. NO BEGGER GETS THE BEST.

d dullaard way get f9 flat for waec no go fit understand wetin jp morgan means. na only kunu, fura danono, cattles, goats, sheeps, tuwo and gworo him sabi.

vedaxcool:
If only Jonadaunce saved up enough naira when oil price was good the CBN would not be forced to tighten control over the dollar instead he allowed the carting away of several billion of dollar which further strained the already depleted currency reserves.

una hypocracy stinks terribly sotey angels for heaven dey cover their nose. was it not una darling ameachi, judas iscariot and his gang of theives that fought gEJ and NOI against eca savings? u no remember when dem ameachi's governors forum dat took GeJ fg to court over exess crude account? yeye dey smell.

Oh yes... they keep trying to force Nigeria through every means possible to devalue the Naira. And mumu people here keep getting excited because they feel it is a justification for their hatred for buhari. What these mumu people fail to admit is that the problem started from January under the maladministration of their hero.

With the fall in oil prices, darker days may be ahead for Nigeria and this has nothing to do with buhari or Jonathan. But on the flip side, if only GEJ saved some money in the SWF or ECA when the oil prices where sky high, Nigeria would have had enough funds to balance this economic crunch.

drss:

[s]una hypocracy stinks terribly sotey angels for heaven dey cover their nose. was it not una darling ameachi, judas iscariot and his gang of theives that fought gEJ and NOI against eca savings? u no remember when dem ameachi's governors forum dat took GeJ fg to court over exess crude account? yeye dey smell.[/s]

Aren't you foolish wailers fighting Buhari yet has it stop him from moving Nigeria forward? in Patience voice Kontinu Dalisgodu in everything we are doing

What we are simply having here is economic terrorism from the west and many educated Nigerians are beginning to notice this, I was hearing the news on different radio stations this morning and its amazing how Nigerians are beginning to question JP morgan's decisions, one of the issues JP morgan raised was the irregularities in the system and liquidity but a lot of Nigerians are laughing at JP morgan's reasons where it is obvious that the Present Govt have been clearing the Augean's table as a result of the mess by the past administration thereby saving a lot of money in the process.

A lot of economic analysts agree that if JP morgan was truly sincere, they would have given Nigeria some additional time. Also some are already advising the Govt to stop western agencies from managing our sovereign wealth fund as they also need us too but they are making it to look like a one sided affair.

My take in all of this is that we need to start doing what I called Nationalistic thinking instead of making it look as if we cannot survive without some nations, imagine we are importing cow meat into Nigeria and some folks want us to continue with that shit when we have enough cattle here competing with humans for space.

Gradually we would get there

Sorry Us Investors, we are just paying for our mistake on the election day. I just hope we will survive..

citizenisb:
The drop in crude oil price is the main culprit

yes but the questions were what next do you do
1,what measures are you taking to reverse the effects

1a,creating a 'forced' liquidity control puts you in control? maybe but that is not the only solution

obailala:


With the fall in oil prices, darker days may be ahead for Nigeria and this has nothing to do with buhari or Jonathan. But on the flip side, if only GEJ saved some money in the SWF or ECA when the oil prices where sky high, Nigeria would have had enough funds to balance this economic crunch.

Actually IF ONLY THE STATE GOVERNORS HAD NOT RECEIVED A SUPREME COURT TO SPEND THE ECA FUNDS AGAINST ALL advices from Okonjo and Gej.
Maybe they would be respite.

nnachukz:
He hasn't been in control of anything meaningful. Certain actions he has taken so far has been negative and against our economy and national unity.

did u know what u are saying? So u preferred to be spending dollars in Nigeria, u want to dollarise us.

baralatie:


Actually IF ONLY THE STATE GOVERNORS HAD NOT RECEIVED A SUPREME COURT TO SPEND THE ECA FUNDS AGAINST ALL advices from Okonjo and Gej.
Maybe they would be respite.

and where is d 52% of fg share

Jesusloveyou:
and where is d 52% of fg share

what do you think should be done with an e.c.a fund after a supreme court verdict by state Govt that e.c.a was to be shared as an income earning account!