Abdulmajidkhs
Well-known member
NIGERIA'S MACROECONOMIC VULNERABILITIES ARE EXACERBATED BY CURRENCY SCARCITY
· Naira weakens to N614 per dollar
· Nigeria may slip to lowest global ranking
As Nigeria struggles to manage with forex market gaps, persistent foreign exchange (forex) shortages have raised concerns about the country's macroeconomic future.
MSCI has said that Nigeria may be demoted from frontier market category to standalone market status, the lowest worldwide rating.
Nigeria has been restricting dollars due to decreasing oil income, which accounts for around 90% of foreign exchange profits. Despite the government accessing the offshore bond market twice this year, the country's foreign exchange reserves have fallen 4% this year to $38.8 billion.
The naira weakened to N614 per dollar at the parallel market from N610 a week earlier, according to Abubakar Mohammed, a Lagos-based bureau de change (BDC) operator.
Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), also stated that more people and companies are finding it difficult to purchase dollars through banks and are turning to the illicit market. “There is no liquidity, and the banks aren't meeting,” he explained.
NIGERIA'S MACROECONOMIC VULNERABILITIES ARE EXACERBATED BY CURRENCY SCARCITY
· Naira weakens to N614 per dollar
· Nigeria may slip to lowest global ranking
As Nigeria struggles to manage with forex market gaps, persistent foreign exchange (forex) shortages have raised concerns about the country's macroeconomic future.
MSCI has said that Nigeria may be demoted from frontier market category to standalone market status, the lowest worldwide rating.
Nigeria has been restricting dollars due to decreasing oil income, which accounts for around 90% of foreign exchange profits. Despite the government accessing the offshore bond market twice this year, the country's foreign exchange reserves have fallen 4% this year to $38.8 billion.
The naira weakened to N614 per dollar at the parallel market from N610 a week earlier, according to Abubakar Mohammed, a Lagos-based bureau de change (BDC) operator.
Aminu Gwadabe, President of the Association of Bureaux De Change Operators of Nigeria (ABCON), also stated that more people and companies are finding it difficult to purchase dollars through banks and are turning to the illicit market. “There is no liquidity, and the banks aren't meeting,” he explained.
NIGERIA'S MACROECONOMIC VULNERABILITIES ARE EXACERBATED BY CURRENCY SCARCITY
