Fixed income flows to Nigeria stable despite EM turmoil

Offshore investor flows to Nigeria, are remaining stable for now, despite the ongoing Emerging Market (EM), turmoil.

This is according to Michael Larbie, Chief Executive Officer and Regional Head: West Africa for FirstRands Nigerian unit called Rand Merchant Bank, in a chat with me, today in Lagos.

Larbie said: "On the fixed income side, the flows have so far continued to be robust, there have been some redemption's, but on a net-net basis, the rate of outflows is not as bad as we see in other markets, like South Africa, India, and Turkey. On a comparative basis Nigeria is well positioned."

The naira has come under renewed pressure in recent days and has traded outside the Central banks nominal band peg of 155 plus or minus 3 percent per dollar.

The offshore flows into Nigerian fixed income assets are necessary for reserve accretion for the central bank, whose firepower (gross reserves) stood at $42 billion (Feb 12), down some 3.4 percent since the start of the year.