Expert Explains Stability Of Naira


An investment expert, Mr Nicholas Nyamali, has
attributed the rise in the external reserves and stability of the naira to the
inclusion of Nigeria’s bond market in JP Morgan and Barclays Index.

said that the inclusion was the major cause of foreign inflow into the capital

inclusion is a strong reflection of the improvement in the domestic bond market
over the years and a vote of confidence in Nigeria’s economic fundamentals,” he

who is the Managing Director of Investment One Financial Services Ltd, told
newsmen that no investor would resist a double-digit yield on investment.

however, warned against a strong dominance of foreign investors in the local
market to prevent it from being susceptible to dictate of foreigners.

said, The way the bond and equity markets are going, they may be influenced by
global events and unforeseen politics. “Besides, economic shocks can make our
capital market unattractive and this can trigger capital flight,” Nyamali said.

called on the regulators to ensure more reforms initiatives and sensitisation
to further boost local participation in the market.

Nyamali said that the forbearance
package for stockbrokers; the removal of stamp duty and the Value Added Tax
from capital market transactions were initiatives that should be built upon.