The concomitants of this have been high and rising inflation rate standing at over 16 per cent by February , from about eleven percent a year ago ; collapsed Gross Domestic Product GDP growth rate that is practically at zero level; sharply dwindling forex reserves as well as deteriorating exchange rate of the Naira against major currencies across the globe.
Apparently alarmed at this pace of loss in value of the local currency vis-a-vis the dollar and others, the Central Bank of Nigeria late last year came up with a policy to encourage forex remittances to Nigeria from the Diaspora. The policy allows the beneficiaries of remittances the choice to be paid in dollar or the Naira.
- online forex trading in kenya.
- andromeda trading system source code.
- next level forex.
For some reasons, the expected upsurge in forex inflow via remittances, courtesy of the new policy was not happening. Rather, the pressure on the local currency kept heightening, even, when, owing to the obviously unexpected rise in crude oil price since the dawn of and forex inflow therefrom, some accretion to the external reserves was recorded. The webinar moderator pointedly. Apparently alarmed, again, by this incubus, the Central Bank of Nigeria came up with yet another policy to further encourage the inflow of forex via Diaspora.
But one week into the implementation of.
CBN’s new forex remittances policy begins today
The point is that the new policy has unwittingly given the naira the leeway to be in a tailspin. Given the persisting hyperinflation at almost 17 per cent , the local currency has literally ceased to perform some of the critical functions of money, namely store of value and standard of deferred payment. And since the local currency no longer helps in storing value or wealth , capital flight by various methods has since prevailed.
Unfortunately, this ineluctable fate of the naira is intricately intertwined with the political and economic issues of the Nigerian state. The subsisting inclement investment climate, accentuated by socio-political upheavals is pointedly anathema to capital inflow and formation.
Products & platforms
In other words, safety, security and stability precede returns on investment. So, whither the Naira?
- como operar intradia en forex.
- tony-fx forexfactory.
- employee stock options exercise strategy.
Frontpage October 21, Naira loses as Nigerian govt adopts flexible exchange rate policy The currency closed at N March 22, Related News. Naira gains at official market. Naira gains on black market, falls on Nafex window. Share on Tumblr. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
Nigerian Foreign Exchange Market Developments and Private Equity Investment
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour. Abdulkareem Mojeed. More News. Africa faces severe debt crisis, UN warns March 31, Apple expands repair provider programme to more than countries March 31, Police confirm three officers dead, four missing in Akwa Ibom March 31, Next Post.
Tax Alert: Issue No. | December - KPMG Nigeria
Discussion about this post. Subscribe to News via Email. Enter your email address and receive notifications of news by email.