Nigeria floats its currency: Free at last

Posted: June 16, 2016 in economy
Tags: , ,

UK Only Article: 
standard article

Issue: 

Divided we fall

Fly Title: 

Nigeria floats its currency

Location: 

LAGOS

Main image: 

20160618_wbp505.jpg

Rubric: 

A slumping economy and high inflation prompt a much-needed reform

 
 
 
 

BARE shelves in supermarkets and soaring inflation would worry any central-bank governor. For Godwin Emefiele in Nigeria, the added twist is that both problems are partly his fault. The central bank’s policy of trying to maintain the value of the naira, Nigeria’s currency, in the face of a slump in the price of oil, which used to account for about 90% of the country’s export earnings, has failed miserably. Now it is being scrapped.
Mr Emefiele tried heroically to conserve the country’s dwindling reserves of foreign exchange. In effect, he banned the import of a huge range of goods, from tinned fish to toothpicks; arbitrarily rationed the supply of dollars from the central bank to …

via Economic Crisis http://ift.tt/1rs1LaK

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