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Nigeria Downgraded From FTSE Russell Equity Index - Business - Nairaland

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Nigeria Downgraded From FTSE Russell Equity Index by 4Play(m): 8:36am On Sep 18, 2023
Nigeria has been demoted from a frontier market to an unclassified market one year after an annual equity country classification review by FTSE Russell, a subsidiary of London Stock Exchange Group, placed Africa’s largest economy on its watch list of countries monitored for possible reclassification.

The downgrade takes effect from 18 September when Nigerian index constituents will be deleted at zero value from FTSE Frontier Index Series, including the FTSE Frontier 50 Index, FTSE IdealRatings Islamic Index Series, FTSE/JSE All Africa Index Series, FTSE Middle East & Africa Extended Index Series and FTSE/MV Exchange Index.

FTSE Russell equity indices are used by investors across the world as equity benchmarks, allowing them to track the performance of specific market segments.

The decision followed a ratification by the FTSE Russell Index Governance Board and was arrived at after no improvement was recorded in the ability of international institutional investors to repatriate capital at a foreign exchange rate that would be used in FTSE Russell equity indices, a statement said.

“FTSE Russell has received feedback from market participants that although Nigeria has adopted a floating foreign exchange (FX) rate for the Nigerian Naira in the Investors’ & Exporters’ (I&E) FX Window, which is now operating on a “Willing Buyer, Willing Seller” basis, the lack of liquidity in the I&E FX Window continues to adversely impact the ability of international institutional to replicate benchmark changes,” the document said.

https://www.premiumtimesng.com/news/top-news/624940-nigeria-downgraded-on-ftse-russell-equity-indices.html

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Re: Nigeria Downgraded From FTSE Russell Equity Index by HopeSpencer: 8:38am On Sep 18, 2023
.


They downgraded Nigeria in their useless ratings because investors won't be able to move their dollars out of Nigeria easily. We call it capital flights.

Oyinbo no happy that government won't let them enjoy their spoil in peace.


.

1 Like

Re: Nigeria Downgraded From FTSE Russell Equity Index by EmeeNaka: 8:47am On Sep 18, 2023
Story this is.
These are the hallmarks of Tinubu idiotic administration
Re: Nigeria Downgraded From FTSE Russell Equity Index by 4Play(m): 8:52am On Sep 18, 2023
There has been a lot of hullabaloo about reforms undertaken by this government. A few weeks ago, for instance, I was arguing the government was wrong to immediately remove fuel subsidy.

In hindsight, I have come to realise what seems to have been done is to effectively reduce subsidy, not eliminate it. That's not bad in itself (I prefer this) but the deceptiveness of government policy pronouncements fuels mistrust.

The same thing is happening with the FX market where I have always thought immediate liberalization is necessary to eliminate the gap between the official and black markets and enable the market determine the exchange rate. In reality, what they have done is depreciate the official rate but the chasm between it and the black market rate remains and is increasing.

In reality, not much has changed but a little bit of honesty and transparency would be useful to help buoy international investors' confidence. Nigerians already have a reputation for being deceitful, it's unhelpful if the Nigerian government conforms to that stereotype.

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Re: Nigeria Downgraded From FTSE Russell Equity Index by 4Play(m): 8:53am On Sep 18, 2023
HopeSpencer:
.


They downgraded Nigeria in their useless ratings because investors won't be able to move their dollars out of Nigeria easily. We call it capital flights.

Oyinbo no happy that government won't let them enjoy their spoil in peace.


.


So to you, this is good news?

You can't easily attract capital if capital repatriation is hindered.

Nigeria won't grow without large scale capital importation.

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Re: Nigeria Downgraded From FTSE Russell Equity Index by HopeSpencer: 8:56am On Sep 18, 2023
4Play:



So to you, this is good news?

You can't easily attract capital if capital repatriation is hindered.

Nigeria won't grow without large scale capital importation.

Good news or no good news, what do I stand to gain from Nigeria?
Re: Nigeria Downgraded From FTSE Russell Equity Index by Nbote(m): 9:09am On Sep 18, 2023
HopeSpencer:
.


They downgraded Nigeria in their useless ratings because investors won't be able to move their dollars out of Nigeria easily. We call it capital flights.

Oyinbo no happy that government won't let them enjoy their spoil in peace.


.

So investors doing business should suffer for the cluelessness of your government Are they the ones responsible for the naira's freefall
Re: Nigeria Downgraded From FTSE Russell Equity Index by Swiftgrp: 7:11am On Oct 05, 2023
4Play:


https://www.premiumtimesng.com/news/top-news/624940-nigeria-downgraded-on-ftse-russell-equity-indices.html

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