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LequteMan
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The Central Bank of Nigeria's resolve to place a ban on sale of dollars may instead worsen the problem it's supposed to solve, experts have warned.
Excerpt from BusinessDay:
The Central Bank of Nigeria’s (CBN) ban on sale of dollars to importers of telecom equipment, power generators and finished products at its foreign exchange auction is a panic policy which may worsen rather than alleviate the problems it was proposed to solve, analysts said at the weekend.
According to them, the importers would still source dollars, possibly from the black market to fund their imports despite the restrictions. This could mount pressure on dollar demand and hike prices in an import Analystsdependent nation, then putting the consumers at the receiving end, they said.
The CBN banned the sale of dollars at its Retail Dutch Auction System (RDAS) to importers of electronics, finished products, information technology, generators, telecommunications equipment, invisible transactions, instead shifting demand to the interbank market.
The decision was to maintain the existing stability in the foreign exchange market and to strengthen ailing naira and conserve foreign reserves which closed around $38 billion at the weekend.
click here to read more
#Nigeria #CBN #Forex
Excerpt from BusinessDay:
The Central Bank of Nigeria’s (CBN) ban on sale of dollars to importers of telecom equipment, power generators and finished products at its foreign exchange auction is a panic policy which may worsen rather than alleviate the problems it was proposed to solve, analysts said at the weekend.
According to them, the importers would still source dollars, possibly from the black market to fund their imports despite the restrictions. This could mount pressure on dollar demand and hike prices in an import Analystsdependent nation, then putting the consumers at the receiving end, they said.
The CBN banned the sale of dollars at its Retail Dutch Auction System (RDAS) to importers of electronics, finished products, information technology, generators, telecommunications equipment, invisible transactions, instead shifting demand to the interbank market.
The decision was to maintain the existing stability in the foreign exchange market and to strengthen ailing naira and conserve foreign reserves which closed around $38 billion at the weekend.
click here to read more
#Nigeria #CBN #Forex