JPMorgan to remove Nigeria from emerging market bond indexes

The Naira weakened 20% to a record low of 206.32 per dollar in the year through Feb. 12

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.

The Central Bank of Nigeria under Governor Godwin Emefiele introduced several foreign-exchange trading restrictions from December to stem the drop of the naira amid weaker oil prices.

Read more: JPMorgan to Remove Nigeria From Emerging Market Bond Indexes – Bloomberg Business