jeff juwana
Moderator
According to Mr Okechukwu Unegbu, a former President of the Chartered Institute of Bankers of Nigeria, the current bearish trend of the Nigeria Stock Exchange is not a sign of a crash of the capital market but rather due to the increment in Cash Reserve Requirement (CRR) for public sector deposits.
The CBN in July raised the CRR on public sector deposits, including deposits from the three tiers of government, from 12 per cent to 50 per cent.
Some capital market watchers believe that the increment will prompt major investors to redirect their fund from the capital to money market, where returns will be higher. Mr. Unegbu urged investors to remain calm amid the trend and take advantage of low price of equities to increase their stakes.
The CBN in July raised the CRR on public sector deposits, including deposits from the three tiers of government, from 12 per cent to 50 per cent.
Some capital market watchers believe that the increment will prompt major investors to redirect their fund from the capital to money market, where returns will be higher. Mr. Unegbu urged investors to remain calm amid the trend and take advantage of low price of equities to increase their stakes.