Nigerian Dissenters Win JPMorgan Support to Ease Naira Rules
- Pressure builds on Emefiele to scrap foreign-exchange rules
- Bonds of largest African economy to leave index by end-October
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The voices urging Central Bank of Nigeria Governor Godwin Emefiele to scrap restrictions on foreign-exchange trading and allow the local currency to devalue have just won support from JPMorgan Chase & Co.
The New York-based lender will cut Africa’s largest economy from its local-currency emerging-market bond indexes tracked by more than $200 billion of funds by the end of October, JPMorgan said in a statement on Tuesday, citing a lack of liquidity and limited transparency in the foreign-exchange market. More than $3 billion of Nigerian bonds may be sold because of the exclusion, according to ETM Analytics.