Operators in the nation’s capital market have lamented the plan by Barclays Bank to delist the Federal Government’s bond from its index, attributing the development to volatile foreign exchange and macro-economic concerns in the country.
Their worries came as Barclays Bank plans to consult with its index users on whether Nigeria’s sovereign debt should remain in its emerging market local currency government bond benchmark.
The index provider had said it would drop Nigeria from its index, citing same lack of liquidity and currency restrictions and coming on the heels of the pronouncement by JP Morgan to delist Nigerian bond from its index.
Already, Barclays has listed Nigeria’s eligibility for inclusion in the Emerging Market Local Currency Government Index among the primary topics to be considered in its yearly review process, according to a statement, though without additional details.
However, the operators have urged the government to take more proactive fiscal measures to restore confidence in the nation’s economy, stressing the need for it to work out modalities that would help to forestall further occurrence.This is coming on the heels of earlier de-listing of the country’s bond from HP Mordan’s index market.
