The Nigerian economy has suffered in the ongoing low crude oil environment, which provides most of the country’s foreign currency earnings.
SEE MORE: High Volume Sell-Off in Nigeria ETF
Despite the ongoing risks, some investors are beginning to see opportunities in the Nigerian markets after the sell-off. Over the past two weeks, Exotix Partners LLP and Standard Bank Group Ltd. have told clients, most of whom fled after the country started imposing capital controls from late 2014, that they should start buying naira assets again, according to Bloomberg.
“The cheap naira is attracting foreign investors,” Lutz Roehmeyer, a money manager at Landesbank Berlin Investment, told Bloomberg. “At 325 per dollar, the naira is too weak” and Landesbank anticipates a rebound.
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Global X Nigeria Index ETF