Financial expert has said that the newly launched Naira Settlement Foreign Exchange Market will create a window of investment opportunity for portfolio investors into the economy. This was the position of Ade Jimo during a chat with journalists in Abuja weekend. He said that equity managers all over the world are looking for opportunity like what obtains in the country now. He however, cautioned the monetary regulatory authorities in the country to ensure adequate regulatory compliance of any investor that wants to take advantage of the system so that the economy will not suffer unwarranted shock, if investors suddenly withdraw from the market.
According to him, “the regulatory institutions must be very careful to tighten the system so that portfolio investors withdraw their hot money, it will not create a kind of shock that happened in 20018 global financial crises.”
It would be recalled that Central Bank of Nigeria CBN formally flagged off the Naira Settlement Foreign Exchange Market on Monday, June 27, 2016 in Lagos. Speaking at the historic ceremony, CBN Governor Mr. Godwin Emefiele, expressed delight that the foreign exchange market in Nigeria has attained the this position where participants in Nigeria can settle foreign exchange futures transactions in Naira.
According to Emefiele, who was represented by the Special Adviser, Financial Market, Mr. Emmanuel Ukeje, “this product is novel in Nigeria and it gives comfort regardless of the price at which you have quoted to buy foreign exchange in Nigeria.” In the same vein, the product is also expected to provide relief to Nigerians seeking Dollars to import critical machinery and raw materials from abroad as they can now lock-in their foreign exchange deals in earnest against their future demands.
He reaffirmed the commitment of the apex Bank to ensure the success of the news foreign exchange market structure and also promised to honour all obligations arising from future deals.
In his speech at the epoch making event, the Managing Director of the Financial Market Dealers Quote, Bola Onadeko urged the regulators of the financial markets to strive for the success of the of this new foreign exchange initiative by ensuring desired liquidity.
Earlier in her welcome address, the Chariperson of the FMDQ, Dr sarah Alade, represented by Mr Yinka Sani of Stanbic IBTC, noted that the launching of the hedging product has revolutionized the financial landscape in Nigeria as the market is now adequately positioned among the global standards and at same time provide liquidity for the market. She gave an assurance that FMDQ would ensure transparency and innovations in order to attract investor to Nigerian market.
The Naira-settled OTC Future are non-deliverable forwards where by parties to a contract agree to an exchange rate for a predetermined date in the future, without the obligation to deliver the underlying United States Dollars on maturity or settlement date but only required to settle exchange rate differentials in Naira.

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