Both the Minister of Finance,
But since the announcement of
"Banking sector stocks went into negative since the announcement," Chief Executive Officer,
But Mrs. Okonjo-Iweala in her reaction had described the concerns in the market as nothing unusual, assuring players in the stock market of government's resolve to pay attention to managing the economy.
She said government was committed to maintain macro-economic stability that would enable the administration continue the transformation of the various sectors of the economy.
"We will maintain tight fiscal policies," the minister said. "We expect a continuation of the monetary policies that have been on at the
In her maiden media briefing on Friday in
The value of the national currency, the naira, has continued to fluctuate, stirring speculations that government might be compelled to consider devaluing the currency.
But the acting CBN governor said her administration at the bank would continue to tighten its policies to ensure that the value of the naira remained stable, pointing out that there were no immediate plans to consider devaluation.
Assuring stakeholders in the financial sector, including the international community, of the commitment the CBN under her leadership to sustain its achievements, Mrs. Alade said this would be realised through appropriate deployment of monetary policy tools to ensure price and financial system stability.
The CBN, she said, would continue to intervene in the interbank foreign exchange market to ensure the stability of the exchange rate of the Naira and preserve the value of the domestic currency. The bank would remain committed to monetary and price stability and the smooth functioning of the foreign exchange market, she added.
"I wish to state unequivocally that the Nigerian economy has remained strong, sound and resilient over time," Mrs. Alade said, pointing out that the domestic economy has remained robust, with a growth rate of 6.87 per cent in 2013.
Noting that the exchange rate has also remained generally stable, with the
With the current level of reserves at seven months of imports cover, as at
Finance industry analysts have identified two major concerns in the market thrown up by the suspension of the CBN governor.
Apart from it signalling a threat to the autonomy of the
"The autonomy the Central Bank Governor is very important and key to investors and the market? If the foreign investors get hold of that impression, they may move out their investments from the market to other kore reliable destinations,"
Afrinvest, an investment bank in
The bank said this helped preserve the value of investments in
"As a consequence of President
Afrinvest said Federal Government bond yield should also cross the 15 per cent mark in the near term, as investors re-price
The bank, however, said the legitimacy of the president's action might be called to question as events unfold, pointing out that the appointment of an objective and independent Central Bank Governor remained a daunting task if the decision was sustained.
Noting that this would negatively impact investor's perception of the country, driving the Corruption Perception Index, CPI, further south of the 144th rank (out of 175 countries) in 2013, Afrinvest called for the insulation of the CBN governorship position from political pressures.
"This will ensure the independence of the
A banking industry analyst, Nothando Ndebele, described
Mr. Ndebele said
"We believe he is likely to maintain a firm policy environment and would be inclined to tighten policy in the current environment of naira weakness," Mr. Ndebele said.
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