The foreign exchange policy of the federal government not to devalue the Naira would stabilise the nation’s capital market at the long run said experts. This is because the decision had reduced activities of speculators and capital flight at the Nigerian Stock Exchange (NSE). The foreign exchange policy  reduced activities of speculators in the form of portfolio investors in the market.
Alhaji Rasheed Yusuuf, the Managing Director, Trust Yield Securities Ltd., said that the decision reduced foreign investors’ participation in the market as well as curtailed speculative buying. He said that the capital market lost big time in 2015, because of massive sell off by foreign investors and some high net worth individuals, that ultimately led to a drastic drop in the price of equities. He added that the market was gradually stabilising because portfolio investors are not investing the way they used to in the past. He said that there was need for the government and regulators to reorganise the capital market to have more local investors that would support local industries to achieve economic growth.
 

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