The Financial Times UK has described the economic policies of the
\nPresident Muhammadu Buhari administration as the \u2018height of foolishness\u2019.<\/p>\n
The leading international business publication in an article by Steve
\nJohnson, the deputy editor of the Financial Times, said the economic
\npolicies of the Buhari administration is doomed to fail because it is
\ntailored after Venezuela\u2019s exchange rate policy and China\u2019s failed equity
\nmarket strategy.<\/p>\n
The article faulted the circuit breaker on the Nigerian stock exchange It noted that this month, Beijing abandoned a similar policy after just Quoting John Ashbourne, Africa economist at Capital Economics, it said:<\/p>\n \u201cIt is hardly confidence-inspiring that Nigeria is copying a Chinese See the full article below:<\/p>\n Nigeria plans to create a $25 billion fund with public and private Copying Venezuela\u2019s exchange rate policy and China\u2019s failed equity market But, at least in the opinion of John Ashbourne, Africa economist at \u201cLow oil prices are battering Nigeria\u2019s export-dependent economy, but it\u2019s \u201cNigeria is sliding towards a Venezuela-style FX regime and adopting a Both measures were announced after markets closed on Friday, January 15<\/span><\/span>.<\/p>\n The circuit breaker on the Nigerian stock exchange, one of the worst
\nwhich pauses trading for 30 minutes if stock prices fall 5 per cent and
\nwill cease for the day if it is triggered twice in a session, or after
\n1.45pm<\/span><\/span>.<\/p>\n
\nfour days, stating that in a falling market the existence of the circuit
\nbreaker encouraged more selling as traders rushed to exit while they
\ncould.<\/p>\n
\npolicy that is widely seen to have failed.\u201d<\/p>\n
\nfinancing to modernize infrastructure and avoid a recession.<\/p>\n
\nstrategy might seem the height of foolishness.<\/p>\n
\nCapital Economics, that is precisely what Nigeria, the continent\u2019s largest
\neconomy, has just done.<\/p>\n
\nthe government\u2019s market-distorting response that risks pushing the country
\ninto a Venezuela-style crisis,\u201d Mr Ashbourne says.<\/p>\n
\nChinese-style stock market circuit breaker. Neither will reassure foreign
\ninvestors, many of whom seem to be eyeing the exits.\u201d<\/p>\n
\nperforming in the world this year with a fall of 17.7 per cent, will pause
\ntrading for 30 minutes if stock prices fall 5 per cent.<\/p>\n