Capital market stakeholders laud CBN’s intervention on Naira, lists benefits

Capital market stake­holders have lauded the Central Bank of Nigeria(CBN)’s devalu­ation of naira to a new of­ficial exchange rate at N168 to the United States (US) dollar from its previous rate of N155, describing it as a good step in the right direction.

The move, was stemmed from the recent free-fall of the naira resulting from glob­al oil price decline and high dollar demand.
Also, benchmark interest rate was also increased to 13 per cent from 12 per cent; in­dicating a raise of 100 basis points.
Specifically, Managing Director/Chief Investment Officer FBN Capital Asset Management, Michael Oye­bola commended the move, noting that it would stem the ability of banks to keep run­ning foreign exchange.
“We are having a naira which is over-valued. CBN has to do something because of devaluation and oil price falling and for it to stem the ability of banks to keep run­ning the forex, it has to be very bold and that is exactly what it did.
“For the economy, we are import dependent nation and if oil prices keep going down, there may be economic slow down so it is good to tighten our belt,” he added.
The spokes person for the Securities and Exchange Commission(SEC), Obi Adindu stated that it was imperative going by what is happening to the key pro­duce, which is the oil that informs the rate of the naira.
A senior stockbroker with APT Securities stated that it was also appropriate and long expected since the naira has not been dependent on the dollar.
Meanwhile, Bibo-Oluwa Academy has emerged win­ner of SEC Quiz Competi­tion on capital market for secondary schools in Nigeria organised by the Securities and Exchange Commission (SEC) Nigeria.
The competition which started early November all over the country at state level and zonal levels culminated in the grand finale held in Abuja, Wednesday.
Following closely in sec­ond position was Abdulra­sheed Raji Special School, Sokoto while Community Secondary School Okposhi, Ebonyi State emerged third.
Other schools that partici­pated in the finals are Gov­ernment Secondary School, Akim Calabar, Cross Rivers State which came first among other five secondary schools from the South-South zone of the country, Chapel Sec­ondary School Tanke, Ilorin, Kwara State from North- Central zone and Federal Government College, Azaure Bauchi State from North- East zone.