The Financial Markets Dealers Association of Nigeria (FMDA) has called for stable monetary and fiscal policy implementation to boost investment inflows to the economy.
The group also advocated stronger financial sector regulatory frameworks in a communique issued at the end of its 2022 financial markets conference in Lagos.
The keynote address themed: “Impact of Monetary Policy Framework and Liquid Markets on the Economy” was delivered by Chairman, Coronation Capital Limited, and FMDA Board of Trustees (BOT) Chairman Aigboje Aig-Imoukhuede.
The consensus among other participants from banks, regulatory institutions, non-bank financial institutions, small-scale entrepreneurs and other stakeholders was the need for the Central Bank of Nigeria (CBN) to bring down inflation rates to tolerable and target levels and curtail foreign exchange rate volatility.
“The need to note that financial markets only do not help economic growth but collective decision of the political and economic leaders of a nation creates desired growth. The relevance of the global Gross Domestic Product and global population on economic policies and its impact on economic growth needs to be studied by all financial market participants,” the group said.
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According to FMDA, financial sector regulators need to follow the multidimensional index to assess the quality of Monetary Policy Framework via the Accountability, Independence, Policy Operational Strategy and Communications (AIPOC).
The group highlighted the role of financial markets from the monetary point of view, international monetary funds function as a driver of fiscal policies and the influence of monetary pricing to economic growth.
It called for active collaboration between the CBN and the market, in ultimately instituting a rule-based regulatory framework for sustainable domestic growth.
The FMDA also called for pre-and post-Monetary Policy Committee (MPC) interactive sessions with the CBN to strengthen trust between markets and regulators, contingency planning in anticipation of economic volatility improve inter-bank trading, liquidity, risk management and deepen financial products benefits.
The group said there was a need to attain price stability in the general price level of the domestic economy to foster sustainable economic growth.
CBN Director, Financial Markets Department (FMD), Mrs. Angela Sere-Ejembi, was represented by Deputy Director, Aderinola Shonekan.
Her presentation was on “Regulatory Framework and its effect on Liquid Markets”.
The CEO, Economic Associates, Ayo Teriba, presented a paper on “National Economic Outlook and Essential tools for participation in Global Financial Markets”.
The Managing Director/CEO, FSDH Merchant Bank Limited, Mrs. Bukola Smith, delivered a paper on “Risk Management as Effective Tool to Drive Liquidity and Transparency” while Femi Okulaja of Bloomberg presented a paper on “Market Infrastructural Development: A Tools for Financial Markets Deepening and Recovery”.