MSCI, a global provider of equity, fixed income, real estate indexes, multi-asset portfolio analysis tools, ESG and climate products has announced its decision to extend consultation to allow more time for the liquidity situation in the Nigerian FX market to stabilize following the recently implemented measures by the central bank.
Reuters in a report quoted Jean-Maurice Ladure, global head of index management research at MSCI saying this in a statement.
The report quoted MSCI saying it will continue until Sept. 29 its consultation on whether to strip Nigeria of its frontier market status and move it to a standalone spot. Results will be announced on or before Oct. 31.
It said MSCI will continue to consult with financial market participants on a potential reclassification of Nigeria to standalone market from frontier market after recent changes to foreign exchange trading, the index provider said on Thursday.
Nigeria’s central bank last week moved to liberalize the foreign exchange market and unify exchange rates, and the naira currency has fallen nearly 40% to the dollar since. As part of its market classification review, MSCI also said it welcomes proposed measures aimed at improving international investors’ accessibility to the Korean equity market. It may also consult further on the classification of Egypt “in case of further deterioration in market accessibility.”