Emefiele’s reappointment good omen for capital market

The unprecedented reappointment of Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele has been described as one development that speaks to policy consistency.

It will further consolidate macroeconomic stability especially with respect to exchange rate and inflation.

Prof. Uche Uwaleke of the Nassarawa State University, Keffi stated these while reacting to news that Emefiele’s name has been forwarded to Senate for confirmation again.

The CBN Governor’s first tenure will end in June.

“Investors both domestic and foreign can have some degree of confidence in the direction of monetary policy which is positive for the capital market.

“One thing is now certain: that the interventions by the CBN in critical sectors of the economy especially agriculture and non-agric based SMEs will continue”, Uwaleke said.

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According to him, these will rub off positively on economic recovery efforts especially now that the CBN under Emefiele has signaled an accommodative monetary policy stance.

“It is equally positive for financial systems stability.

“So, I expect a positive reaction.

“Going forward, I would like to see an intensification and effective monitoring of the interventions, in particular, the Anchor Borrower programme.

“Emefiele should also focus on ensuring increased access to credit by SMEs and generally fostering a low-interest rate environment with the support of fiscal authorities”, the professor of Capital Market advised.