TVC E. Mixed reactions have trailed CBN’s announcement today Wednesday 20th of July 2016, of a flexible exchange rate in the foreign exchange market.
Business Editor with The Guardian Mattias Okwe a guest at TVC Breakfast Show today in Abuja also believe its depreciation is off good standard. Nigeria should concentrate more on exportation. And that the economy needs to broaden and diversify by going into different productions, eg , agriculture, coco etc.
He also said, to improve the economy we must go through production.
While some foreign investors are keeping sealed lips, others are saying they will wait and see the level of the exchange rate depreciation before venturing into the Nigeria market.
However, local investors are cautious in their reactions stating that the economy was held down by government control for too long.
Meanwhile, It appears that the world economic crisis is hitting the Nigerian economy with unyielding vigor. Since March 2008, Nigerians have experienced a significant increase in the misery index as the NSE index has declined approximately by 44,405 or 66.9% from its 2008 high, and the stock market capitalization has declined by about 7.1 trillion or 59%.
The financial institutions that have lost millions of Naira from defaults on margin accounts and investors that have lost their nest eggs in the downtrend are still reeling from the impact of the downtrend. To compound matters, the current devaluation of the Naira is set to impact more people than the capital market collapse.
What do you think about this?
