February 23, 2016
The difficulties in getting foreign exchange and the steep fall in the value of the naira are seriously affecting the manufacturing sector, with prices of locally made and imported food items heading northward, IFE ADEDAPO writes
The scarcity of foreign currencies in the country, especially the dollar, which has made it difficult for manufacturers of essential food items to import raw materials into the country, is threatening about 40,000 jobs.
Investigations by our correspondent showed that the high cost of importation due to unprecedented fall in the value of the naira has made importation difficult and expensive, thereby resulting in many factories operating far below their installed capacities.
It was also gathered that as a result of the currency crisis, the prices of essential food items were gradually rising as a direct consequence of the high cost of production and the imported substitutes becoming more expensive
The naira, which has been taking a beating from the fall in global oil prices since mid-2014, tumbled to 391 against the dollar at the parallel market on Friday and has remained at the Central Bank of Nigeria-pegged 199 to $1 at the interbank market.
On January 11, the central bank stopped the sale of foreign currencies to Bureaux de Change operators as part of measures to reduce the pressure on the nation’s foreign reserves.
Since the announcement was made, the value of naira, which was 283 against the dollar at that time, has been depreciating.
Read the story here
The difficulties in getting foreign exchange and the steep fall in the value of the naira are seriously affecting the manufacturing sector, with prices of locally made and imported food items heading northward, IFE ADEDAPO writes
The scarcity of foreign currencies in the country, especially the dollar, which has made it difficult for manufacturers of essential food items to import raw materials into the country, is threatening about 40,000 jobs.
Investigations by our correspondent showed that the high cost of importation due to unprecedented fall in the value of the naira has made importation difficult and expensive, thereby resulting in many factories operating far below their installed capacities.
It was also gathered that as a result of the currency crisis, the prices of essential food items were gradually rising as a direct consequence of the high cost of production and the imported substitutes becoming more expensive
The naira, which has been taking a beating from the fall in global oil prices since mid-2014, tumbled to 391 against the dollar at the parallel market on Friday and has remained at the Central Bank of Nigeria-pegged 199 to $1 at the interbank market.
On January 11, the central bank stopped the sale of foreign currencies to Bureaux de Change operators as part of measures to reduce the pressure on the nation’s foreign reserves.
Since the announcement was made, the value of naira, which was 283 against the dollar at that time, has been depreciating.
Read the story here
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