The Association of Bureaux De Change Operators of Nigeria has said that the JP Morgan Chase & Co’s return to the Nigerian market would boost Central Bank of Nigeria’s chances of achieving its $60 billion foreign reserves target in 2019, in spite of any arising shock in oil prices.
The President, ABCON, Alhaji Aminu Gwadabe, said Federal Government’s plan to begin talks with JPMorgan about being included in the company’s bond index for emerging markets, would enable Nigeria to benefit from the $20 billion overseas investment planned by the United States Bank, which will see it raise wages, hire more, and open new branches in emerging market countries.
Gwadabe said, “I want to use this opportunity to congratulate the CBN and the Federal Government on the good news of JP Morgan’s renewed interest in the Nigerian bond market, which will enhance investors’ confidence in our
economy.
“The CBN has brought stability in the forex market by making dollar available to genuine forex users, especially at the retail end of the market. That has ended volatility in the market and boosted the confidence of foreign investors in the local economy.”
The ABCON boss said the US Bank’s return to Nigeria will enable the government access needed funds for infrastructural development in the economy, and urged the CBN to explore the opportunity in reducing the multiple exchange rate and give more confidence to foreign investors.
“It will create more opportunity for a genuine and transparent competition among forex operators and boost employment opportunities in the country, as well as deepen the forex, naira and the equities markets,” Gwadabe
said.
The Director-General, Debt Management Office, Ms. Patience Oniha, also explained that government was presently selling more foreign debt to help reduce the financing burden from paying double-digit yields on local-currency bonds. That would help free up funds to increase investment in infrastructure and spur economic growth.
“We would like to get back into the JP Morgan Index. The securities trading was never the problem; it was always the foreign-currency liquidity, which has now improved,” she said.
Meanwhile, the Finance Minister, Mrs. Kemi Adeosun, has said the government is focusing on improving its economy, and that indexes will “naturally return to Nigeria when they see adjustments in line with their
requirements.”
“JPMorgan have their own framework of how they evaluate an economy, and when they are ready, when conditions are good, they will list Nigeria again.
“We should just move in our own direction. What we need to do is to re-position this economy. JPMorgan or any other index will come naturally. My focus really is on the recovery of the economy.
“They will come when the macro-fundamentals are right. They left because the macro-fundamentals were not right,” Adeosun
said.
