Thursday, February 26, 2015 7.20am / The Nigerian Investor, firstname.lastname@example.org
The closure of the rDAS/wDAS foreign exchange window by the Central Bank of Nigeria (CBN) as announced on February 18, 2015 remains a very bold decision market analyst and stakeholders believe would be a respite for the financial market.
Activities in the FX market with the sharp decline in global oil prices has continued to put pressure on the nation’s foreign exchange reserves with no visible economic benefits to the productive sector of the economy and as such necessitating the closure while all demand for foreign exchange is expected to be channeled through the interbank foreign exchange market.
This action has technically put the official foreign exchange rate at N199 to $1 from N168 while the naira currently exchange at N222 to $1 at the parallel market.
A brief look at the Nigerian Stock Market in recent times following the action taken by the CBN reveals that the market has been on a bull run in the last seven (7) trading days with an average gain of 1.28% recorded, while the highest gain during the period in review was recorded on February 18, 2015, the day the CBN decision on rDAS/wDAS closure was announced.
So far in the last seven consecutive trading days, the NSE ASI has recorded +9.28% gains.
The Market from the Investors Perspective
In this edition of #TheNigerianInvestor, we conduct our regular market round-up of innovations, activities, developments, AGM’s, market news, corporate actions, company appointments, announcements as well as updates from market regulators.