Why JP Morgan Bond Index's Renewed Interest In Naira Is Good For Nigeria
You see, before Nigeria’s dollar crises escalated in 2015, Naira securities were removed from the JP Morgan Index because of the then emerging foreign currency shortages.
The JP Morgan Emerging Markets Bond Index tracks total returns for traded external debt instruments in the emerging markets, and it is important for Nigeria because it drives increased inflow of foreign exchange.
But 3 years down the lane, the Naira securities is being reconsidered for listing on the index and the Association of Bureaux De Change Operators of Nigeria, ABCON believes this will be in the best interest of Nigeria’s economy.
ABCON President, Alhaji Aminu Gwadabe, said in an interview with newsmen in Lagos that JP Morgan Chase & Co. return to the Nigerian market would lead to improved foreign exchange inflows and boost the Central Bank of Nigeria’s chances of achieving its $60 billion foreign reserves target in 2018.
The ABCON boss said such return would also enable the country to benefit from the $20 billion overseas investment planned by the United States bank which would see it raise wages, hire more people, and open new branches in emerging markets.
In a statement, Gwadabe was quoted as saying, “I want to use this opportunity to congratulate the CBN and the Federal Government on the good news of JP Morgan renewed interest on Nigerian bond market which will enhance investors’ confidence on our economy.
“The CBN has brought stability in the forex market by making dollar available to genuine forex users especially at the retail end of the market. That has ended volatility in the market and boosted the confidence of foreign investors in the local economy.”
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