For investment, dealers seek stable monetary and fiscal policies

Adeyeye Kunle

The Financial Markets Dealers Association of Nigeria (FMDA) has urged the government to implement stable monetary and fiscal policies in order to increase investment inflows into the economy.

In a communique issued at the conclusion of its 2022 financial markets conference in Lagos, the group also advocated for stronger financial sector regulatory frameworks.

Aigboje Aig-Imoukhuede, Chairman of Coronation Capital Limited and FMDA Board of Trustees (BOT), delivered the keynote address titled “Impact of Monetary Policy Framework and Liquid Markets on the Economy.”

Other participants, including banks, regulatory institutions, non-bank financial institutions, small-scale entrepreneurs, and other stakeholders, agreed on the need for the Central Bank of Nigeria (CBN) to reduce inflation rates to tolerable and target levels while also reducing foreign exchange rate volatility.

“It is important to note that financial markets alone do not contribute to economic growth; rather, it is the collective decision of a country’s political and economic leaders that generates the desired growth.” “All financial market participants must study the relevance of global GDP and global population on economic policies and their impact on economic growth,” the group said.

According to FMDA, financial sector regulators must use a multidimensional index to evaluate the quality of the Monetary Policy Framework, which includes Accountability, Independence, Policy Operational Strategy, and Communications (AIPOC).

The group emphasized the role of financial markets in terms of monetary policy, the role of international monetary funds as a driver of fiscal policies, and the impact of monetary pricing on economic growth.

It urged the CBN and the market to work together to establish a rule-based regulatory framework for sustainable domestic growth.

The FMDA also requested pre- and post-MPC interactive sessions with the CBN to strengthen trust between markets and regulators, prepare for economic volatility, improve inter-bank trading, liquidity, risk management, and expand financial product benefits.

The group stated that price stability in the domestic economy’s overall price level was required to foster long-term economic growth.

Mrs. Angela Sere-Ejembi, CBN Director, Financial Markets Department (FMD), was represented by Deputy Director Aderinola Shonekan.

Her topic was “Regulatory Framework and its Impact on Liquid Markets.”

Ayo Teriba, CEO of Economic Associates, delivered a paper titled “National Economic Outlook and Essential Tools for Participation in Global Financial Markets.”

Mrs. Bukola Smith, Managing Director/CEO of FSDH Merchant Bank Limited, presented a paper on “Risk Management as an Effective Tool to Drive Liquidity and Transparency,” while Bloomberg’s Femi Okulaja presented a paper on “Market Infrastructural Development: A Tool for Financial Markets Deepening and Recovery.”