CBN Allays Fears Of Currency Devaluation Impact On Stocks

The Deputy Governor,
Financial System Stability, Central Bank of Nigeria (CBN), Dr Joseph Nnanna has allayed the fears expressed by investors that the recent devaluation of the Naira could have negative impact on capital market investors.
Nnanna who was speaking after an interactive session with students of Government Secondary School Garki, during the 2015 School Mentoring Programme of Global Money Week, said that stocks listed on the Nigerian Stock Exchange (NSE) are priced in Naira and not United States Dollar.
The CBN Deputy Governor noted that the stock market can only be affected by the profitability of the companies which are quoted in the stock exchange, adding that so far, no evidence has been seen.
On whether the fluctuations would affect the importation of raw materials, he said, “The point here is that we talk aboutcosts, we do not talk about returns. The companies that import things from abroad cannot continue to be in business if their returns on investment is not high enough.
He noted that the mentoring programme was to create financial literacy awareness among youths, with a view to preparing them for future challenges and help them imbibe a culture of saving.
Nnanna expressed satisfaction over the response he got from junior students.
He noted that the kids are well informed, adding that the students are very much aware of modern products in the money market like Automated Teller Machines (ATM) and how to make deposits in their accounts.