Skip to main content

Nigeria tightens controls on foreign exchange

(FRANKS..)
Oil platform off the Nigerian coast

The Nigerian central bank has imposed new foreign exchange controls to try to stem the flow of dollars out of the country.
It means importers will not be able to get hard currency to buy a list of 40 items ranging from rice to cement.
The list includes Indian incense, plastic and rubber products, soap and even private jets.
It has also restricted access to the interbank currency market for the purchase of foreign currency bonds.
In April, the central bank limited the amount that Nigerians could spend on credit cards abroad.
The Nigerian currency, the naira, has plunged because of the fall in the oil price.
The central bank has spent $3.4bn propping it up since it fixed the exchange rate in February and tightened trading rules to curb speculation.

Black market

"We see this policy move as confirmation that foreign exchange supply remains extremely tight. But more worryingly, it suggests that the central bank remains reluctant to devalue the naira," said Yvonne Mhango, sub-Saharan Africa economist at Renaissance Capital.
The central bank has said in the past that devaluing the naira by allowing it to float freely on the currency markets is not an option.
The naira, which was trading at 198.50 to the dollar on the interbank market, was reported to be trading close to 220 on the black market in the commercial capital, Lagos, on Wednesday.
Analysts said the latest measures meant importers would increasingly turn to the black market to buy dollars.
Cobus de Hart of South Africa's NKC Africa Economics said: "The decision to, in effect, introduce additional capital controls does not bode well in relation to investor perception and may also adversely affect domestic business operations and costs."

Popular posts from this blog

Chibok abductions: Will Nigerian schoolgirls ever be freed?

(FRANKS..) Continue reading the main story Nigeria abductions Politics and parents Malala's appeal Hostage negotiations Military failings Six months since militant Islamist group Boko Haram sparked global outrage by abducting more than 200 girls from Chibok town in north-eastern Nigeria, the government has still failed to secure their release. The BBC's Will Ross spoke to the parents of some of the girls about their ordeal. In the remote farming community of Chibok, the agony is only getting worse. The parents and other relatives of the missing 219 school girls complain that they have been left to rely on a diet of rumour from the media and a long list of unfulfilled promises from the politicians. "The government must do more to get the girls back. Some parents are already dying. About six women have g...

Obama in Jamaica pays tribute to Bob Marley

(FRANKS..) Barack Obama has taken a tour of the Bob Marley museum in Jamaica after becoming the first US president to visit the country since 1982. To the strains of the late reggae star's One Love, Mr Obama was shown around the sprawling house in Kingston that was Mr Marley's final home. The US president said he was a fan of the musician, telling his museum guide: "I still have all the albums." Mr Obama is in Jamaica to meet the 15-member Caribbean Community bloc. But his first stop after landing in Kingston was the old Victorian-style house in central Kingston that Mr Marley called home between 1975 and his death in 1981. Mr Obama spent 20 minutes in the museum, which now houses artefacts from the singer's life including gold records and his Grammy Lifetime Achievement award. His arrival aboard Air Force One on Wednesday made him the first sitting US president to set foot in the country since Ronald Reagan visited 33 years ago. He was gree...

Who is to blame for the rise of ISIL?

(FRANKS..)   n this Head to Head  special from Washington DC, Mehdi Hasan challenges retired Lieutenant General Michael T. Flynn, on the rise of ISIL, the War on Terror, torture, and how to deal with Iran. Flynn was the former head of the US Defence Intelligence Agency (DIA) and a commander of J-SOC, the ghost military unit whose squads hunted Al Qaeda in Iraq and Afghanistan all the way to Osama Bin Laden’s compound in Pakistan. With no panel or audience, we ask him whether the US is to blame for creating ISIL and whether the War on Terror has become a crusade. We also discuss torture in US bases and why he is opposed to a deal with Iran.    Follow us on:   Facebook and @AJHeadtoHead  Is the US to blame for ISIL? with Michael T. Flynn will be broadcast on Friday July 31 at 2000 GMT,  and will be repeated on Saturday August 1 at 1200 GMT, Saturday August 2 at 0100 GMT and Monday August 3 at 0600 GMT. Head to Head   is Al Jazeer...