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ABCON welcomes move by FG to return Nigeria to JP Morgan Index

The Association of Bureaux De Change Operators of Nigeria (ABCON) as described the current plan of the federal government to to return Nigeria to JP Morgan Index excites, saying the switch will mean well for the economy.

In a statement issued by the President of the group, Alhaji Aminu Gwadabe, he said “JP Morgan’s return to the Nigerian market would strengthen the inflow of foreign exchange (forex) in the country and also boost the Central Bank of Nigeria’s (CBN’s) chances of achieving its $60 billion foreign reserves target in 2018 in spite of any shock that may arise in the economy”.

Apart from helping to strengthen the monetary policy of the economy, ABCON averred that “Such return would also enable Nigeria benefit from the $20 billion overseas investment planned by the US bank which will see it raise wages, hire more, and open new branches in emerging market countries”.

“I want to use this opportunity to congratulate the CBN and the Federal Government on the good news of JP Morgan renewed interest on Nigerian bond market which will enhance investors’ confidence on 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.”

Gwadabe also saluted the Central Bank of Nigeria (CBN), for introducing the Investor’ and Exporters’ (I&E) Forex Window which has since April 2017 attracted over $27.8 billion in turnover into the economy and brought about transparency as well as stability in the forex market.

He noted that the US Bank’s return to Nigeria would enable the government access needed funds for infrastructural developments in the economy and urged the CBN to explore the opportunity in reducing the multiple exchange rates and create more confidence for 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 federal government is 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.

Already, the Director-General of Debt Management Office (DMO) Ms. Patience Oniha, noted that “We would like to get back into the JP Morgan Index”.

She revealed that “daily trading volumes for the naira have risen to about $200 million from as little as $20 million three years ago, according to Standard Chartered Plc. That bodes well for discussions on returning to the index, according to Oniha. The securities trading was never the problem, it was always the foreign-currency liquidity which has now improved”.

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