JP Morgan Chase (JPM) on Tuesday issued a press release saying it will start phasing out Nigeria from its Emerging Market Bond Index this month and will completely yank Nigeria off the index by end of October. The bank cites the current restrictions on forex transactions and policies of the CBN as its reasons alleging that it has prompted investor concerns about a shortage of liquidity. JP Morgan had earlier in the year warned that it will take Nigeria out of the index if the current CBN policies which most investors see as capital controls is not reversed. The potential implications of this move are far-reaching as JP Morgan Index is currently tracked by over $200 billion Funds. Here are a few immediate implications for Nigeria

Political Capital
The current Buhari Government has been taking credit for some of the policy initiatives carried out by Goodluck Jonathan Government such as stable power, the Treasury Single Account, tax initiatives, war on terror, renewal of strong diplomatic ties with the US etc. The Buhari Government is also not relenting in calling out the past government for its bad policies and alleged corruption. This development will now give critics of the current government, the opposition party and sympathisers of the past government enough armory to blame the current government. They will surely blame the Buhari government for not acting swiftly enough to stop the decision of JP Morgan considering that it issued the threat about 9 months ago. They will also say it is because of the slow mode of operation of the current government (which for example has not announced a cabinet more than 100 days after being in office) that has made the CBN Governor act alone thus portraying the country as one without an economic direction. This will cost the president a lot of political capital as even his supporters must now be jittery.

Educating....

Their slow n steady mentality is getting us into a deep mess everyday

let them work on it...we want naira to be stronger against dollar

[quote author=iamprincewill post=37869837]JP Morgan Chase (JPM) on Tuesday issued a press release saying it will start phasing out Nigeria from its Emerging Market Bond Index this month and will completely yank Nigeria off the index by end of October. The bank cites the current restrictions on forex transactions and policies of the CBN as its reasons alleging that it has prompted investor concerns about a shortage of liquidity. JP Morgan had earlier in the year warned that it will take Nigeria out of the index if the current CBN policies which most investors see as capital controls is not reversed. The potential implications of this move are far-reaching as JP Morgan Index is currently tracked by over $200 billion Funds. Here are a few immediate implications for Nigeria
Political Capital
The current Buhari Government has been taking credit for some of the policy initiatives carried out by Goodluck Jonathan Government such as stable power, the Treasury Single Account, tax initiatives, war on terror, renewal of strong diplomatic ties with the US etc. The Buhari Government is also not relenting in calling out the past government for its bad policies and alleged corruption. This development will now give critics of the current government, the opposition party and sympathisers of the past government enough armory to blame the current government. They will surely blame the Buhari government for not acting swiftly enough to stop the decision of JP Morgan considering that it issued the threat about 9 months ago. They will also say it is because of the slow mode of operation of the current government (which for example has not announced a cabinet more than 100 days after being in office) that has made the CBN Governor act alone thus portraying the country as one without an economic direction. This will cost the president a lot of political capital as even his supporters must now be jittery. more on http://nairametrics.com/jp-morgan-index-list-of-possible-implications-when-nigeria-is-evetually-kicked-out/