Home -
Original -
Main body -

WikiFX Express

Exness
EC Markets
TMGM
XM
FOREX.com
FXTM
AvaTrade
FXCM
IC Markets Global
Eightcap

EXPERTS GIVE SOLUTIONS TO STRENGTHEN THE NAIRA IN THE FACE OF NAIRA DEPRECIATION

IQCent | 2022-04-21 12:13

Abstract:The naira confronts a greater degree of economic reduction than the country has witnessed in recent decades as a result of reduced foreign exchange, dwindling foreign capital, rising political risk, and reported poor performance.

img_v2_61d65d8e-6915-48c7-805b-2c731fef672g.jpg

· The market disparity is at an all-time high of N173/$

· Political risk, a general shift toward higher interest rates aggravates the situation

· Keeping of assets, increased savings

· Naira would reach a point of no return if FX is liberalized.

The naira confronts a greater degree of economic reduction than the country has witnessed in recent decades as a result of reduced foreign exchange, dwindling foreign capital, rising political risk, and reported poor performance.

According to research and opinions by experts, the financial authority's capabilities may have been crumbled as the economy grapples with apparently intractable fiscal challenges.

The investment community is concerned that monetary frameworks may worsen more in the coming months as tension and activities in politics will be increased. Furthermore, the market is under pressure from offshore investors who will be reinvesting dividends in the coming months.

According to observers, the growing political unease has already sent a strong signal to foreign investors, who are removing a chunk of their foreign wealth from the economy.

The situation has been compounded by a string of interest-rate rises in nations in the western region, which, according to Olarenwaju Abimbola, an expert in investment and economist, have made developed countries more tempting than risky markets, for instance, Nigeria.

For the first time since 2018, the Federal Reserve of the United States raised the benchmark interest rate by a portion of 25 points, after being told that the rate can be raised at least three times this year as part of its financial normalization. Before the increase, the Fed's main interest rate was about 1.5%.

The Bank of England's financial policy committee just increase the interest rates from 0.5% to 0.75% as a motive for its attempts to counteract the rising cost of living. The BOE raised interest rates for the third time in four months, bringing them to their highest level since the start of COVID-19.

South Korea, New Zealand, Brazil, Russia, South Africa, and a number of countries have raised lending rates in the recent year to combat worrying inflation rates. The World Bank, the International Monetary Fund (IMF), and other research groups have warned impoverished countries to brace themselves for massive capital flight.

The option of raising policy rates was rejected by the Monetary Policy Committee (MPC) with six out of 10 members voting against it. The country's Monetary Policy Rate is still at 11.5 percent, where it has been since September 2020.

While Nigeria's interest rate is still much higher than that of some other countries, Abimbola, CEO of Towers Securities Limited, noted that Nigeria's ability to retain capital is hard, with the rate being only one of them.

According to him, Nigerians would experience outflows of foreign portfolio investors in the next months since the local market does not now provide important incentives to offset more attractive US and other market rates.

Nigeria's equity market, according to Abimbola, remains undesirable. For the first time in decades, a capital gain tax of 10% is being paid on stock market transactions above N100 million, in addition to the present 10% withholding tax on profits.

下载.jpg

“The difficulty now is to make money from others who are also seeking money.” Capital imports have plummeted dramatically. The United States, the United Kingdom, and other Western countries have become increasingly appealing. Investors are told that they may keep their money at home and earn minimal interest on it. Despite the fact that the return on investment is still better in Nigeria, the risk factor is a concern. Capital repatriation is difficult. What is the use of investing in a market where funds cannot be simply repatriated? Abimbola inquired.

Investors appear to be resorting to the parallel market to get foreign currency (FX) since the official market usually lacks sufficient liquidity to meet their needs. According to experts, the exit of foreigners from the Nigerian market is due in part to their inability to repatriate their $5 billion cash.

Although the current amount of money trapped in the market is unknown, David Adonri, Vice Chairman of Highcap Securities Limited, believes it may be comparable to or more than what it was last year due to the ongoing FX crisis. He went on to argue that the issue depresses foreign investment in general since FDI holders have enough problems in repatriating their hard-earned profits.

The tensions eased marginally over the weekend, but analysts say FX will remain a sellers' market in the coming months, with some predicting that it could break through the N600/& hurdle in a matter of weeks.

img_v2_7f97da29-47c1-44f8-8d12-8423fb318c2g.jpg
Forex tradingForex Analysisforex marketMarket depth

Related broker

Regulated
Tickmill
Company name:Tickmill UK Ltd
Score
8.92
Website:https://www.cn-tickmill.com/cn?utm_medium=media-buy&utm_source=wikifx&utm_campaign=cn_homepage_com&utm_content=homepage&utm_term=button
5-10 years | Regulated in United Kingdom | Regulated in Cyprus | Regulated in South Africa
Score
8.92
No Regulation
PO TRADE
Company name:PO TRADE LTD
Score
2.17
Website:https://m.po.trade/en
2-5 years | Suspicious Regulatory License | MT4 Full License | MT5 Full License
Score
2.17
Offshore Regulated
CM Trading
Company name:CMT Processing Limited
Score
1.56
Website:https://www.cmtrading.com/
5-10 years | Regulated in Seychelles | Retail Forex License | Suspicious Overrun
Score
1.56
No Regulation
EagleFX
Company name:EagleFX Ltd
Score
1.54
Website:https://www.eaglefx.com
5-10 years | Suspicious Regulatory License | Suspicious biz area | High potential risk
Score
1.54
No Regulation
IQCent
Company name:Wave Makers LTD
Score
1.50
Website:https://www.iqcent.com/
5-10 years | Suspicious Regulatory License | High potential risk |
Score
1.50

Read more

MetaTrader Access Disruptions Shake Chinese Forex Traders and Brokers

Chinese MetaTrader 4 and 5 users face access issues as regulatory pressures disrupt new user connections to broker servers on these platforms.

Original 2025-06-02 16:53

Use Leverage Like a Pro | Avoid the Mistakes That Wipe Traders Out

In the high-stakes world of financial trading, leverage is a potent instrument that enables traders to punch well above their financial weight. By allowing market participants to control larger positions with a relatively small outlay of capital, leverage opens the door to potentially outsized returns. But it is not without peril as amplified gains also come with amplified losses, and understanding how leverage works is crucial for anyone stepping into leveraged markets.

Original 2025-05-31 08:00

CWG Markets’ 10% Deposit Bonus Campaign With Rewards Up to $5,000

CWG Markets, a global online trading platform, has announced a new deposit bonus campaign running now for a limited time. Both new and existing clients are eligible to receive a 10% deposit bonus, with a maximum reward of up to USD 5,000 per account.

Original 2025-05-30 17:12

Capital.com Reports Strong Growth and Leadership Changes

Capital.com has reported a notable increase in trading volumes in the first quarter of 2025, coinciding with a key leadership transition within the company. Dana Massey, the firm’s Chief Product & Technology Officer, has announced his departure after nearly three years in various senior roles.

Original 2025-05-30 17:09

WikiFX Express

Exness
EC Markets
TMGM
XM
FOREX.com
FXTM
AvaTrade
FXCM
IC Markets Global
Eightcap

WikiFX Broker

FXTM

FXTM

Regulated
Exness

Exness

Regulated
DBG Markets

DBG Markets

Regulated
XM

XM

Regulated
FXCM

FXCM

Regulated
TMGM

TMGM

Regulated
FXTM

FXTM

Regulated
Exness

Exness

Regulated
DBG Markets

DBG Markets

Regulated
XM

XM

Regulated
FXCM

FXCM

Regulated
TMGM

TMGM

Regulated

WikiFX Broker

FXTM

FXTM

Regulated
Exness

Exness

Regulated
DBG Markets

DBG Markets

Regulated
XM

XM

Regulated
FXCM

FXCM

Regulated
TMGM

TMGM

Regulated
FXTM

FXTM

Regulated
Exness

Exness

Regulated
DBG Markets

DBG Markets

Regulated
XM

XM

Regulated
FXCM

FXCM

Regulated
TMGM

TMGM

Regulated

Latest News

SEC Drops Lawsuit Against Binance in Major Crypto Enforcement Shift

WikiFX
2025-05-31 10:00

MH Markets Broker Review

WikiFX
2025-05-31 15:12

Crypto News: $1 Trillion Managed Funds Fail Key Compliance Tests

WikiFX
2025-06-02 17:14

No worries — You can invest with these offshore regulated brokers

WikiFX
2025-06-02 18:31

Tiger Brokers Q1 2025 Profit Soars Amid Growing Online Trading Volume

WikiFX
2025-06-02 15:24

ATFX Secures Cambodia License, Boosting Forex, and Crypto Trading Growth

WikiFX
2025-06-02 15:55

Use Leverage Like a Pro | Avoid the Mistakes That Wipe Traders Out

WikiFX
2025-05-31 08:00

MetaTrader Access Disruptions Shake Chinese Forex Traders and Brokers

WikiFX
2025-06-02 16:53

xChief Broker Review 2025: Trustworthy or Risky?

WikiFX
2025-05-31 11:53

SEBI bans famous Bollywood, Actor Arshad Warsi & Others

WikiFX
2025-06-02 19:05

Rate Calc

USD
CNY
Current Rate: 0

Amount

USD

Available

CNY
Calculate

You may also like

primecoinglobals

primecoinglobals

Zirve Global

Zirve Global

East Asia Futures

East Asia Futures

SCSL

SCSL

DILLON W.SRL

DILLON W.SRL

Trans Scan

Trans Scan

BODAFX

BODAFX

Westpac

Westpac

BRD

BRD

Raffle Option

Raffle Option