The Central Bank of Nigeria’s latest directive for a stop on the issuance of foreign exchange for food import across the nation is causing ripples in the economy.
The statement regarding the issue was made by President Muhammadu Buhari’s spokesperson, and it is not the first time that the president was giving similar orders.
Just last year, Buhari made similar announcement, but the bank only partly followed his orders. As of today, even after the order of last year, some food importers still receive forex.
However, the new directive will ensure complete ban. As a result, no importer of food or fertiliser will be get forex from the Federal Government.
Buhari has always been very vocal about this matter. Since his election in 2015, he has been working very hard to cut imports, especially when it comes to agricultural products, to expand the agriculture sector of the country and make it more successful.
In Nigeria, the CBN is the biggest player in the forex business. It regulates the whole market.
To make the forex business more popular among the younger generation of the country, there are many forex brokers who offer Nigerian investors special bonuses.
To make it a lot easier for locals to start trading, a very famous FX broker called XM offers Nigerian forex traders the ‘XM no Deposit Free Bonus,’ which allows Nigerians to start investing in the forex market without having to make deposits with their own money.
Many people use this type of bonuses because it is a lot easier for them to become part of this interesting market.
Many people in Nigeria use this opportunity to learn more about trading and start investing without risking their own funds.
Although the president and the leadership of the country are adopting these regulations to make sure that the local currency stabilises, the situation is getting tough.
The ban on imports like rice, for example, has resulted in inflation, which ended up creating a very frustrating situation in the country of about 200m people.
Despite the double-digit inflation that the country faces, its foreign services have been bettered as the CBN started to spend billions of dollars on programmes such as propping up the local currency, the naira.
