JP MORGAN TO DELIST NIGERIA FROM EMERGING MARKET GOVT. BOND INDEX BY END OF OCTOBER

JP Morgan says it will delist Nigeria from its Emerging Market Government Bond Index by end of October due to alledged lack of transparency and liquidity in the nations foreign exchange market.
JP Morgan had earlier in January this year placed Nigeria on a negative index watch on its Government Market Index.
Delisting Nigeria could have dire consequences as many foreign investors might be forced to sell off their Nigerian bond holdings which is estimated at about $2billion.
It is thought that there are some foreign portfolio investors who knew little about investing in Nigeria but decided to invest because it is listed on JP Morgan's GBI-EM Index.
Delisting Nigeria may mean that bond yields and borrowing costs will increase negatively affecting Nigeria's economy. The naira may face another round of major devaluation as the economy struggles to sustain the pace of forex outflows.