page 22 lead

page 22 lead

Barclays cuts Nigeria from EM local bond index

Barclays will remove Nigeria’s sovereign debt from its emerging markets local currency government bond benchmark, the bank said on Monday.

“Nigeria will be removed from the flagship Emerging Markets Local Currency Government Index as of February 1, 2016,” the bank said in a statement, adding that the debt would continue to be eligible for its broader Emerging Markets Local Currency Government Universal Index.

Africa’s largest economy has taken a hammering from the steep drop in oil prices since mid-2014. The move by Barclays is adding to Nigeria’s list of financial woes after rival index provider JP Morgan announced in September it would drop Nigeria from its index, citing a lack of liquidity and currency restrictions.

Barclays also said that Russia and Argentina would become eligible for its Emerging Markets Government Inflation-Linked Bond (Reuters)