Strong dollar threat to Nigerian capital market – NSE

The Nigerian Stock Exchange on Wednesday warned that the growing strength of the United States dollar was a threat to the capital market as it was capable of encouraging foreign portfolio investment outflow.

The Chief Executive Officer, NSE, Mr. Oscar Onyema, said this in Lagos during the Exchange’s 2014 market recap and outlook for 2015.

A report by CNNMoney on Tuesday had projected that the dollar could be equal to the euro by 2016, noting that the resurgent US economy had strengthened the dollar significantly in recent months, against almost every other currency.

And the NSE CEO, who observed that the rising dollar led to foreign portfolio reversals, which contributed to the poor performance of the key market indicators in 2014, said it remained a threat.

Onyema was, however, optimistic about the performance of the Exchange in 2015 based on the projections for the country and initiatives by the Exchange. ...BusinessNews