The market reacted positively to the Central Bank of Nigeria (CBN) new foreign exchange policy announced on Wednesday by governor Godwin Emefiele.
The new forex rates will be determined by market forces in what economists have tagged a “float of the naira”. Over The Counter (OTC) trading will however begin at N260 to the dollar next week, the apex bank has said. The CBN will only step in when there’s a volatility.
The Nigerian Stock Exchange (NSE) All-Share Index gained 3.17 per cent on Wednesday in the wake of the announcement.
The development boosted the NSE market capitalisation by N295bn as the value rose to N9.579tn from Tuesday’s close of N9.284tn, while the NSE ASI hit 27,891.96 basis points from 27,034.05 basis points.
Aggregate of 588.427 million shares worth N3.477bn were traded in 5,088 deals at the close of trading on the floor of the Exchange on Wednesday.
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