Nigeria FX weakening raises hedging question for OMO trade

By Ross Lancaster
30 Jan 2020

A popular frontier market trade in Nigerian open market operations (OMOs), central bank securities, has been faltering on the back of local currency depreciation, which if deepened will force foreign market participants to consider eating into their returns with an FX hedge.

In a client note this week, Société Générale’s head of emerging markets strategy and head of research Asia-Pacific, Jason Daw, advised investors to stay unhedged on 12 month OMO exposure. But he also laid out three different hedging routes for those accounts still active in the market.


Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access:

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: or find out more online here.