UK-based bank, Barclays, will consult with its index users on whether Nigeria’s sovereign debt should remain in its emerging market local currency government bond benchmark, the bank has stated.
This came barely one month after JP Morgan announced its decision to expel Nigeria from its Global Bond Index-Emerging Market.
As stated by a statement, Barclays listed the “eligibility of Nigeria for inclusion in the EM Local Currency Government Index” among the primary topics to be considered in its annual review process, though it gave no additional details.
Reuters, reports that the Nigerian economy has taken a hammering from the steep drop in oil prices since mid-2014.
An exclusion by Barclays could add to Nigeria’s list of financial problems after a rival index provider, JP Morgan, announced in September it would drop Nigeria from its index, citing a lack of liquidity and currency restrictions.
Barclays stated the consultation would run through October and results to be published shortly afterwards.
Nigeria is one of 19 countries, which make up the index and the only one from Africa apart from South Africa.
Barclays stated Nigeria’s bonds had a weighting of 1.2 per cent on October 6.
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