Nigeria to lose Frontier Market Status on…


Nigeria to lose Frontier Market Status on…


Nigeria is poised to lose its frontier status because of persistent foreign-exchange shortages in ’s largest economy, reports Bloomberg.
MSCI Inc. is considering downgrading the MSCI to standalone markets status from frontier market, the New York- company said in a statement.
“There has been a continual and severe deterioration in the ability to repatriate funds from Nigeria,” Feldman, head of Management , said in the statement.
“Given the prolonged nature of the affecting the market’s , we have put forth the consultation to reclassify the MSCI Nigeria Indexes.”
The loss of frontier market status could cast doubts on perhaps the only spot in Nigeria’s flagging economy and stir more despair for investors.
Read also: Exchange rate volatility naira, ecosystem in premium real
Africa’s biggest crude producer has been rationing because of lower oil that accounts for about 90% of foreign exchange earnings.
The nation’s foreign-exchange reserves have dropped 4% this year to $38.8 billion, despite the tapping overseas bond market twice.
Nigeria’s central bank has devalued the currency three in the last two years and has a backlog of unmet dollar demand from investors, according to the Fund.
Nigeria’s NGX All Share Index has gained 21% this year in local currency terms.

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