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LequteMan
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Nigeria’s largest company, Dangote Group, is struggling with a constricted supply of foreign-exchange and is relying on its international cement operations and export-credit agencies to get around the shortage, Bloomberg reports.
“The forex situation is extremely tight in Nigeria,” Group Executive Director Devakumar Edwin said in an e-mail, "but Dangote Cement is already generating income in foreign exchange in Ethiopia, South Africa, Tanzania, Senegal and Cameroon. Further, we are also making financing arrangements through export-credit agencies for the first time.”
Nigeria's central bank has pegged the naira at 197-199 per dollar since March 2015 to stem its slide amid a rout in oil prices. The policy has however led to a shortage of foreign-exchange and has been widely criticized by investors and businesses, who blame the restrictions for exacerbating the country’s economic slump. Nigeria's growth was 3 percent last year, the slowest pace since 1999, according to the International Monetary Fund.
About $10 million is sold daily in the official market, aside from the central bank sales, which is too low to meet demand, Razia Khan, Standard Chartered Plc’s chief Africa economist, said.
“The forex situation is extremely tight in Nigeria,” Group Executive Director Devakumar Edwin said in an e-mail, "but Dangote Cement is already generating income in foreign exchange in Ethiopia, South Africa, Tanzania, Senegal and Cameroon. Further, we are also making financing arrangements through export-credit agencies for the first time.”
Nigeria's central bank has pegged the naira at 197-199 per dollar since March 2015 to stem its slide amid a rout in oil prices. The policy has however led to a shortage of foreign-exchange and has been widely criticized by investors and businesses, who blame the restrictions for exacerbating the country’s economic slump. Nigeria's growth was 3 percent last year, the slowest pace since 1999, according to the International Monetary Fund.
About $10 million is sold daily in the official market, aside from the central bank sales, which is too low to meet demand, Razia Khan, Standard Chartered Plc’s chief Africa economist, said.
