Indeed, Naira devaluation is probably the most potent weapon against the prosperity of Nigerians. Nigeria’s migration from a potential industrial power house with bustling social affluence, to a subdued and stumbling economy clearly began with the adoption of IMF’s Structural Adjustment Programme during Babangida’s regime: the chorus from International Agencies, at that time, was also that falling oil prices with an unserviced debt burden and the consequent restriction of trade credit to Nigeria, were the products of an allegedly overvalued Naira exchange rate.
BY PETER EGWUATU
The inflows into the Emerging Market (EM) funds slowed further, to $1.8billion for the second successive week, as positive flows into Global Emerging Market, GEM funds declined, according to report by Renaissance Capital, Rencap.
“However, we are still seeing strong inflows and Year to Date, YtD flows fell to $9.5billion. If inflows continue at their current pace, in a couple of months overall 2014 flows will have recovered their lost ground. Both active and passive funds recorded inflows over the past week, both at around $890million” the report noted.
According to Rencap “ Over the past week, inflows into Asian (ex. Japan) funds were the biggest on a regional scale, at $1.3billion. Positive flows into GEM funds declined to $710millon. Latin American funds reported minor outflows, of $140million, as did Europe, Middle East and Africa, EMEA funds, with outflows of $60million, despite considerable inflows into Russian funds. Within the EMEA region, Russian funds recorded inflows of $150million. However, Emerging Europe Regional funds saw outflows of $140million. Inflows into South Africa, SA funds amounted to $20million. Turkey-dedicated funds saw outflows of $ 40million.”
On some outflows from EMEA, the report stated “Based on global fund allocations, including GEM and Brazil, Russia India & China, BRIC funds, inflows into Russian equities stood at $120millon.
S A stocks reported inflows of $30million, while Turkish names saw outflows of $50million. Both Nigerian and Kenyan shares recorded inflows, of $3.2million and $1.1million, respectively.”
On Gold market, the Ren cap report noted that “ Over the past week, gold funds saw outflows of $40million. Over the same period, the gold price went down by 0.5%, to $1,312.9/oz.”
The report stated “ Over the week to 13 August, the only index that fell among those under our observation was the MSCI Turkey Index (-2.4%). The best three performers of the past week were the MSCI Russia (+5%), MSCI Czech Republic (+3.9%) and MSCI SA (+3.7%) indices.
If inflows continue at their current pace, in a couple of months overall 2014 flows will have recovered their lost ground. Both active and passive funds recorded inflows over the past week, both at around $890million.”
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