L
LequteMan
Guest
Nigeria – Recently, the Central Bank of Nigeria, placed a ban on sale of Forex to importers of some selected goods in the country.
Read: CBN Bans Forex Sale for 40 Items [SEE LIST]
This is bound to send a mixed signal to different part and sections of the country. However, here are 3 good things the new policy might do for Nigeria’s economy.
1. Creation of jobs
The ban placed on sale of Forex for selected items will mean that importers will find it hard to continue importation of these items. This will in turn lead to an increased demand of these items.
Thus, local industries who supply these items will need to expand and increase their capacity in order to meet the increased demand, hereby creating more jobs for Nigerians.
2. Appreciation of the Naira
Once importation has reduced and Nigeria is feeding itself and producing what it needs, there’ll be less demand to buy the Dollar and other foreign currencies. When this happens, the pressure on the Naira will ease and will make it appreciate in value.
3. Conservation Nigeria's foreign reserves
The Central Bank of Nigeria has been plodding through the country’s foreign reserve in order to prod up the Naira, weakening the country’s foreign reserve.
The effects of the new policy might however conserve and protect the nation’s FR if the situation is treated well.
Written by Oke O. E.
Read: CBN Bans Forex Sale for 40 Items [SEE LIST]
This is bound to send a mixed signal to different part and sections of the country. However, here are 3 good things the new policy might do for Nigeria’s economy.
1. Creation of jobs
The ban placed on sale of Forex for selected items will mean that importers will find it hard to continue importation of these items. This will in turn lead to an increased demand of these items.
Thus, local industries who supply these items will need to expand and increase their capacity in order to meet the increased demand, hereby creating more jobs for Nigerians.
2. Appreciation of the Naira
Once importation has reduced and Nigeria is feeding itself and producing what it needs, there’ll be less demand to buy the Dollar and other foreign currencies. When this happens, the pressure on the Naira will ease and will make it appreciate in value.
3. Conservation Nigeria's foreign reserves
The Central Bank of Nigeria has been plodding through the country’s foreign reserve in order to prod up the Naira, weakening the country’s foreign reserve.
The effects of the new policy might however conserve and protect the nation’s FR if the situation is treated well.
Written by Oke O. E.
