Standard Bank has commended the CBN Governor for his decision to lift the one year restriction on the holding period of the Certificate of Capital Importation (CCI) in the fixed income market.
The Governor, Malam Sanusi Lamido Sanusi, had said the restriction would be lifted on July
The bank said in a statement in Johannesburg on Friday that Sanusi’s disclosure at the Standard Bank’s African Investors Conference, which held in London was a positive development for the Nigerian financial system.
It said the restriction, which required foreign investors to hold their Naira position for a year if they purchased government securities in Nigeria, had acted as an impediment to capital inflows.
“We see this development as a positive breakthrough that should further integrate Nigeria into the global financial system and allow foreign investors to take advantage of attractive double-digit yields especially as the country’s fixed income secondary market is relatively liquid.
“This will boost the external competitiveness of Nigerian debt instruments, compared with its emerging market and frontier market peers where FX restrictions are non-existent,” the statement quoted Stephen Bailey-Smith, Head of African Research at Standard Bank as saying.-NAN
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