N7.406tn Investments to Stocks Attracted by Special Forex Window and Others
As global stock markets grew from 2017 into 2018, Nigeria was not left out in any way. Between mid 2017 and January, 2018, the equities market has grown by over N7 trillion.
While the price of crude oil continues to be on the rise globally, with positive impact on the Nigerian economy positively, the Special Forex Window for investors and exporters, put in place by the Central Bank of Nigeria to help facilitate ease of currency swap in Nigeria, has played a significant role in stimulating investments in Nigeria’s capital market, almost doubling stocks capitalisation.
Since the introduction of the Special Forex Window in April, 2017, the equities market has recorded almost 85% appreciation in investors worth, with stocks rallying across board. All-Share Index and volumes traded, as at 20 April, 2017 were 25,282.75 basis points and 147.887 million respectively, while as of mid January this year, they had appreciated to 45,092.83 basis points and 1.339 billion respectively. Similarly, deals and value of transactions as at April, 2017 were 2,578 and N836.842m but had also appreciated to 9,053 and N8.629bn respectively by mid January.
In his comment on the growth being recorded in the capital market, the Chief Executive Officer of Nigerian Stock Exchange (NSE), Mr. Oscar Onyema, noted: “We attribute this performance, in part, to the central bank’s monetary policies that resulted in increased liquidity in the foreign exchange market”. CBN’s Investors and Exporters FX Window was to ensure liquidity in the forex market and ensure timely execution and settlement of eligible transactions.