See what happened to stocks after CBN’s new forex policy

– The Nigerian Stock Exchange all-share index gained 3.17 per cent on Wednesday, June 15.

– Also, the naira closed at 367 against the dollar at the parallel market hours after the CBN unveiled its flexible exchange rate policy

– Analyst however say it is not a silver bullet; there is still a lot of work to be done

Trading floor of the Nigerian Stock Exchange

Following the announcement of a flexible forex policy by the Central Bank of Nigeria (CBN), the Nigerian Stock Exchange all-share index gained 3.17 per cent on Wednesday, June 15.

According to a report by Punch, the NSE market capitalisation by N295bn as the value rose to N9.579tn from Tuesday’s close of N9.284tn, while the NSE ASI hit 27,891.96 basis points from 27,034.05 basis points.

Aggregate of 588.427 million shares worth N3.477bn were traded in 5,088 deals at the close of trading on the floor of the Exchange market.

Also, the naira closed at 367 against the dollar at the parallel market hours after the CBN unveiled its flexible exchange rate policy.

The national president, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe, who was quoted by Punch said the policy had yet to have effects on the exchange rate at the parallel market.

Analysts also commended the CBN for the new policy, saying it would bring down prices and eliminate market distortions.

“It is a good policy; it will eliminate market distortions and bring down prices,” the Chief Executive Officer, Financial Derivatives Limited, Mr. Bismarck Rewane, said.

READ ALSO: 13 important facts from CBN’s guideline on new forex policy

He added, “However, it is not a silver bullet; there is still a lot of work to be done.”

Recall that the CBN governor said the apex bank would on Friday, June 17 appoint primary and secondary dealers, adding that their dealership level would be categorised based on the volume of transaction that they could handle.

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