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Bankers C’ttee rules out restrictions on domiciliary accounts

NSE capitalisation drops by N262bn
Emefiele visits NSE to allay investors’ fears

By Babajide Komolafe,  Peter Egwuatu & Nkiruka Nnorom

LAGOS — The Bankers Committee, yesterday, said there were no plans to impose restrictions on operations of domiciliary accounts in spite of the volatility in the nation’s foreign exchange market.

Meanwhile, market value of stocks on the Nigeria Stock Exchange, NSE, yesterday fell by N262 billion following massive sell offs by investors.

Domiciliary accounts are used for foreign currency transactions in and outside the country. The recent volatility in the foreign exchange market had occasioned fears that the CBN might restrict the operations of domiciliary accounts as part of measures to curb speculations in the foreign exchange market.

Briefing journalists at the end of the committee’s meeting in Lagos, yesterday, Managing Director/Chief Executive, Guaranty Trust Bank, Mr. Segun Agbaje, said: “The CBN and Bankers Committee decided that there would be no change in the operation of domiciliary accounts and that there would remain unfettered access towards inflows of domiciliary accounts.

“People believe that as things are though now, those rules might change, but the central bank remains committed towards running an open account policy on domiciliary accounts.”

Responding to expectations of further devaluation of the naira, Agbaje said: “As a country, we are trying to find what level the currency devalues to.

“I think exchange rates are very emotional thing. The reality is that devaluation is not a curse. Where we are today is that oil prices are down. As a country, we are trying to find what level the currency devalues to. There is no central bank in the world that allows a free float of its currency. What you do is try to find a price discovery and find a rate at which you can live with.

NSE capitalisation drops by N262bn

Investors dumping of their shares continued, yesterday, as the Nigerian Stock Market downslide for the fourth consecutive trading days with the bears dominating trading activity on the floor of the NSE, resulting to the fall of market capitalisation by N262 billion.

In the same vein, the All-Share Index, another major stock market gauge, declined by 2.37 per cent to close at 27,935.77 points

All sectors traded in the red from the beginning to end of the session.

Emefiele visits NSE to address panic

Meanwhile, the Governor of Central Bank of Nigeria, CBN, Mr. Godwin Emefiele, has assured the investing public, both international and local investors, of the safety of their investments in the Nigerian capital market, saying that the economy is resilient enough to withstand any shock.

 


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