After introduction of restrictions on foreign currency trading and the resulting continuous deterioration of foreign exchange market liquidity, MSCI is closely monitoring the situation in Nigeria with regards to market accessibility.
Related to such, MSCI is proposing to not implement changes resulting from the upcoming May 2016 Semi-Annual Index Review and from selective corporate events for the MSCI Nigeria Indexes, as well as selected composite indexes of which Nigeria is a component.
The MSCI Nigeria Indexes are currently classified under Frontier Markets. Ease of capital inflows and outflows is one of the key criteria in the MSCI Market Classification Framework. Introduction of restrictive measures, such as capital or foreign exchange controls, which can lead to material deterioration of equity market accessibility, may result in the exclusion of such market from the MSCI Frontier Markets Indexes and a reclassification to Standalone Market status.
MSCI welcomes feedback from market participants on the current level of
accessibility of the Nigerian Equity Market as well as any potential mitigation plan.
MSCI will continue to monitor the situation and issue further communications as more information becomes available. MSCI will announce its decision on the treatment of the MSCI Nigeria Indexes and other related indexes on or before April 29, 2016.
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MSCI Global Standard Indexes: Accessibility Of The Nigerian Equity Markets
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