Chairman of brokerage firm, Parthian Partners Limited, owners of digital investment platform, i-invest, Dotun Sulaiman, has expressed optimism about the potential impact of the Central Bank of Nigeria’s proposed policy documentation on rules of the foreign exchange market operation in Nigeria.
In a statement, Sulaiman said this during the National Economic Summit in Abuja.
According to the statement, the CBN Governor, Yemi Cardoso, disclosed during a panel session at the summit that the bank would publish robust policy documentation on what the rules of the foreign exchange market operation would be in the coming weeks.
Sulaiman said the measures could bring much-needed order and discipline to a market that had been described as ‘a jungle’, due to its lack of clear rules and accountability.
He said, “The role the CBN Governor is coming up which is the answer to the free fall. When you have a market that is almost like a jungle, where there are no rules, anything comes and goes, what you get is what we are getting now.”
Sulaiman emphasised the importance of clear and enforceable rules for the market, citing the current lack of transparency in exchange rates as a prime example of the challenges facing Nigeria’s economy.
He stated that the problem in Nigeria was not just the lack of rules, but also the failure to enforce the existing ones, the enforcement of rules and the development of a more organised regulatory environment.
Speaking on investment, he stressed that investment decisions required a clear understanding of the parameters and factors influencing the market, both controllable and non-controllable.
He said discipline and confidence in the system were essential to inspire investment, as no one was willing to invest in a situation characterized by unpredictability.
“It is confidence that inspires investment; nobody will invest in a situation where you don’t know what will happen,” Sulaiman said.