NIGERIA FOREX CRISIS , CRIPPLING BUSINESSES

Losses incurred by investors in conglomerates, multinational corporations and other big capitalized companies quoted on the Nigerian Stock Exchange, NSE, as a result of the delay in the roll out of the new flexible foreign exchange policy has hit N320 billion as at yesterday.


The stock market had recorded a massive rally following the announcement by the Central Bank of Nigeria, CBN, of its plan to introduce a flexible foreign exchange regime.
But the bullish trend gave way to a massive bear run which brought down total market capitalization to N9.3 trillion, yesterday, from N9.7 trillion as at May 25, 2016, a day after the CBN announcement, with the blue chips accounting for about 80 per cent of the total losses.

Most companies in the real sector, especially the big brands have taken similar steps since 2015 to retain their market share and brand equity at huge cost.