New Forex window boosts NSE Index in Q2
By Chioma Obinagwam
The recently created Investor-Exporter foreign exchange (Forex) window has been said to be the major reason behind the recent rally on the Nigerian Stock Exchange (NSE).
NSE’s weekly report for the period ended June 9, 2017 recorded a significant growth of 30.41 per cent to close at 33,276.68 basis points.
Analysts believe that the Investor-Exporter window, which allows investors to trade their Forex at a price they consider appropriate is a major factor responsible for the boom and has created some levels of certainty in the equities market.
Chief Relationship Officer (CRO) of Foresight Securities, Charles Fakrogha said: “Most importantly, the Forex window that was created by CBN for investors. So, the average investor that is coming in has an idea of the amount that he is going to change to in naira. At the same time, when they are being paid in naira, their dividend, they also have an idea of how much they’re going to change it in dollars and vis-à-vis. So, that level of certainty is now attracting more investors.”
The CBN had at the recent bankers’ committee meeting held in Lagos within the quarter under review announced the introduction of an Investor-Exporter window to boost access to Forex.
Analysts are also of the opinion the that the trend is expected to continue with the advent of this window.