Forex Speculators Pose Threat to Nigerian Economy, says ASHON Chairman

The Chairman of the Association of Securities Dealing Houses of Nigeria (ASHON), Mr. Sam Onukwue, has expressed concern over the impact of foreign exchange (forex) speculators on the economy.

In an interview, Onukwue highlighted the need for the government to address macroeconomic challenges, particularly exchange rate volatility and rising inflation, to stimulate economic activities.

Onukwue emphasized ASHON’s advocacy for the government to leverage the capital market for funding infrastructure projects, stating, “The capital market has absorptive capacity to fund most of the infrastructure, and this will reduce the government’s dependence on borrowing.”

He pointed to the continuous over-subscription of SUKUK Bonds as a sign of investors seeking safety for their capital during recessionary periods.

Regarding the ASHON Annual General Meeting (AGM), Onukwue described it as very successful, citing commendations for prudent resource management and engagements with critical stakeholders for market development.

He urged the government to act urgently on its plan to boost the supply side of foreign exchange, emphasizing the need to differentiate between genuine demand and speculative activities.

Onukwue suggested that addressing the supply side would stabilize the exchange rate, positively impacting economic activities and boosting the value of the Naira.

Also, he called for government focus on the solid minerals sector, describing it as a cash cow that could generate employment opportunities, boost export trade, and contribute to GDP growth.

Onukwue stressed the importance of directing attention to the sector to control revenue and prevent it from going into private pockets.