I have read countless comments from the pdp and it's supporters about the decision by JP Morgan to remove Nigeria from it's bond index, the truth of the matter is that they had warned to remove is as far back as January 2015 for currency restrictions.

Was Buhari president in January?

The restrictions prompted JPMorgan Chase &
Co. to warn Jan. 16 that it may remove
Nigeria from bond indexes tracked by more
than $200 billion of funds. Foreign holdings
of domestic debt have fallen by half since
2013, according to Standard Chartered.

www.bloomberg.com/news/articles/2015-02-05/nigeria-woes-deepen-as-jpmorgan-hits-emefiele-with-debt-warning


NB. I am totally indifferent about currency restrictions or JP Morgan itself.

I heard tonyebarcanista or Barcanista mentioned this as Buhari's failure in his thread.

Full article

(Bloomberg) -- As if the collapse in crude prices, forthcoming elections and an Islamist insurgency weren’t enough, investors in Nigeria have another matter to worry about: deciding whether the new central banker is his own man. Godwin Emefiele, appointed in June after President Goodluck Jonathan suspended predecessor Lamido Sanusi almost a year ago, has focused on stemming currency declines that could damage the government of Africa’s biggest oil producer and economy ahead of Feb. 14 elections. Emefiele is “putting off painful and inevitable adjustments” in the exchange rate until after the vote, Bank of America Corp. economists Oyin Anubi and Turker Hamzaoglu in London wrote in a Jan. 21 report. “It’s only natural to think there’s less independence at the central bank,” Kevin Daly, a fund manager overseeing $13 billion of developing-market debt at Aberdeen Asset Management Plc, said by phone from London on Jan. 27. “He replaced arguably the most effective and outspoken central bank governor that we’ve seen in African emerging markets for some time.” Daly said he hasn’t held government bonds in naira since about October, partly because of concern he might not be able to easily sell assets in the currency. Emefiele, 53, said that politics doesn’t affect any of his decisions. “The central bank remains a very independent institution, just like it was under my predecessor,” he said by phone from Abuja on Thursday. “We have never been influenced by any political consideration. No politician talks to us to try and influence us.” JPMorgan Warning Still, the naira has become a campaign issue, with opposition leader Muhammadu Buhari’s team pointing to the weakening purchasing power of the currency under Jonathan. While oil producers with falling exchange rates from Russia to Malaysia have avoided imposing currency controls, Emefiele’s measures cut daily trading of the naira to less than a tenth of previous levels last month, according to Standard Chartered Plc. The restrictions prompted JPMorgan Chase & Co. to warn Jan. 16 that it may remove Nigeria from bond indexes tracked by more than $200 billion of funds. Foreign holdings of domestic debt have fallen by half since 2013, according to Standard Chartered. “It’s difficult for policy makers to ignore that political backdrop,” Ayodele Salami, who oversees about $200 million of Nigerian equities as chief investment officer of Duet Asset Management, said by phone from London on Feb. 4. Investor caution has helped drive yields on local government bonds to 15.4 percent, the highest since August 2012 and steepest among 31 emerging markets tracked by Bloomberg. The stock market is posting the world’s worst losses this year. Jonathan’s Showdown The naira weakened 0.7 percent to 193.82 per dollar as of 2:07 p.m. in Lagos, a record low on a closing basis, to increase losses over the past six months to 17 percent, the most among 24 African currencies tracked by Bloomberg. The exchange rate could still tumble to 255, prices on 12-month forward contracts show. Jonathan, 57, a Christian from the south, faces Buhari, a 72-year-old northern Muslim and former military ruler, in Nigeria’s tightest election since army rule ended in 1999. Tensions are rising with the Islamist militants Boko Haram declaring a caliphate in northeastern Nigeria that’s the size of Belgium. The group killed more than 4,700 people last year, double the number of deaths during 2013, according to Bath, U.K.- based risk consultancy Verisk Maplecroft. Jonathan ousted Sanusi last February, accusing him of “financial recklessness and misconduct.” Now the Emir of Kano, Nigeria’s second-most important Islamic ruler, Sanusi had called on Jonathan to investigate billions of dollars of oil revenue he said were unaccounted for. Speculative Demand Emefiele took over in June, days before crude prices began their 50 percent plunge. Oil provides about 90 percent of Nigerian export earnings and 70 percent of government revenue. The central bank spent $5 billion defending the exchange rate in the last three months of 2014, reducing reserves to a three-year low of $34 billion, while devaluing the midpoint of the official exchange rate to 168 per dollar from 155 and raising the benchmark borrowing cost to a record 13 percent. Trading restrictions introduced in December were needed to cut “spurious or speculative demand” for dollars, Emefiele said in an interview last month. “Any investor that wants to go out is able to do so freely, without any hindrance.” While Sanusi cut the the amount of foreign currency banks can hold without assigned buyers to 1 percent of shareholders’ funds from 5 percent, Emefiele set the amount at zero on Dec. 17, before allowing a 0.1 percent so-called net open position on Jan. 13. Trading Crushed The effect was to reduce daily trading to less than $30 million from $300 million to $500 million and foreign holdings of government bonds in naira to 14 percent of the total from as much as 27 percent in 2013, according to Samir Gadio, Standard Chartered’s head of African strategy. By contrast, Sanusi liberalized Nigeria’s markets by lifting a requirement for foreign investors to hold local-currency debt for at least one year. That resulted in JPMorgan adding the nation’s bonds to its GBI-EM local-currency indexes in 2012. Foreigners increased their holdings of the securities almost fivefold in the next year, according to Bank of America. “Sanusi had high credibility in the international markets and both the nature of his exit and the context resulted in an increase in Nigerian risk premium, which has remained,” Jim O’Neill, the former chairman of Goldman Sachs Asset Management, who now works as a Bloomberg View columnist, said in e-mailed comments from London on Jan. 28. Negative Watch JPMorgan, placing Nigeria on “index watch negative,” said the drop in currency and bond trading “challenges the ability of foreign investors to replicate the benchmark.” The New York-based lender will make a decision within five months. Craig Macdonald, a spokesman for JPMorgan in London, declined to comment. The central bank’s decision to boost the net- open position limit to 0.5 percent of funds on Jan. 22, shortly after JPMorgan’s warning, increased daily trading volumes to about $250 million to $300 million, Emefiele said on Thursday. “We are confident we will remain in the index based on the decision,” Emefiele said. “The main issue was liquidity and we are convinced that liquidity has come up to the level they desire.” For the market to “unfreeze,” the exchange rate probably needs to weaken to 220 per dollar, Antoon de Klerk, who helps oversee $18 billion of emerging market debt at Investec Asset Management Plc, said by phone from London Feb. 2.

FTC for the 1st time ever!!

I dedicate this to uncommon sense!! The uncommon sense of the OP, to all supporters of PMB also, wu with their uncommon senses thought and still thinks PMB is d right man for the Job!! Our uncommon senses will make us proud someday am sure!!
Happy Sunday to all*

Note: By "uncommon sense", I mean good senses d@ are not common

OMG , introvert is right on my tail

reading... please has anyone called tonyebarcanista yet




well, going by the first paragraph, the warning in January 2015 should have been enough reason for GMB to appoint ministers, set up a cabinet/economic team as soon as he was elected and hit the ground running bearing in mind that election years are more about campaigns and less of administration.


my opinion

The wailers won't understand this because they have dead brains full of bigotry in all form.
I pity their generation when they can't tell a simple truth to themselves.
Those who dance along in their tune without any principle of their own is whom I pity most.

Life is not a bed of roses as they say but let make the most out of it. For those calling for war. China should should go to war first then we can think about it.

tonyebarcanista

Hope you are reading this?

And President Jonathan surrounded himself with clueless female minister of coordinating economy telling the whole world nigeria economy is safe.


God will have mercy on Jonathan for what he has put us through in this country

PDP is a gang of thieves

.

Story for the gods.

If only I know what abi who a JP morgan is

Wailing wailers, over to you

Mr. Buhari is totally and comprehensively responsible for jp Morgan removal of Nigeria in their bond index. Any positive or negative that comes from last administration, he must take responsibility.


He is taking praises for improved electric power, and other positive things that comes with last government. So what is is wrong if he takes responsibility for this?

Mr buhari is the leader we know and by so doing he is totally responsible for yanking of Nigeria off jp Morgan bond index.

NawaaaNawaaaNawaaa

INTROVERT:
reading... please has anyone called tonyebarcanista yet

Introvert was beaten great

Can someone please explain how in the very heck this reduces the price of fufu in the market.

ok

APC supporters be like "wailing wailers"



Apc supporters moving all over nairaland like buhari's goat

You don't pay attention to those that wail in ignorance and pain. I say plus ça change to them.

The chief protection seeker is back and will soon write an epistle against this.

kk

Then neither is his administration responsible for the improvement in power supply.

So u mean buhari 3 months of economic idleness has no negative effect on our economy and cant be a factor which led to the jp morgan decision of removing us.... But u believe the same idleness is responsible for electricity improvement through the term body language

baba qo slow

Pdp agenda

"Gbawe is in trouble, now that baba tonyebarcanista is back". Quote me anywhere.

Aftermath of Jonathan baseless and corruption personified rule. Wasted years!

when you are a leader. People will blame you for everything. ..but a leader takes it in his strides and proffers solutions...


I think the issue should be how will buhari fix it...and who caused it.


Check my signature Call or whatsapp


https://www.nairaland.com/2582274/toks-2008-toyota-fj-cruiser

Of course everyone knows barcanista is only a paid laptop boy...I have said it countless times...that boy needs to go to a university...

That you can read novels doesn't make you less an illiterate.