The soaring demand for currency in Nigeria has caused money changers to pool Results their funds to keep pace with the demand. The central bank of Nigeria (CBN) reversed its previous foreign exchange regime to meet the soaring demand. The economic situation in the country is also making the labor movement more active and prone to calling strikes against the government. Since 2000, eight general strikes have been successfully staged. This has led to an increased risk of violent labor actions.
Money changers pool their money to meet soaring demand
Nigeria’s soaring demand for cash has prompted money changers to pool Fixture their money in order to meet it. Many money changers live in the northern capital, Kano, and some travel up to 15 hours to reach Lagos and Abuja, where they exchange dollars for naira. This practice offers a glimpse into Nigeria’s patronage system.
Nigeria’s central bank has taken steps to combat the growing pressure on the naira. In March 2020, it will stop issuing new licenses to currency-trading companies. The move is aimed at curbing the demand for foreign exchange by money changers. Money changers are a vital source of foreign currency for Nigerians traveling abroad.
Economic community of West African States (ECOWAS) agreed to launch a new currency
In an unprecedented move, the Economic community of West African States (ECOWA) has agreed to launch a new currency in Nigeria. The new currency will replace the CFA franc. It is expected to replace the existing CFA franc by 2020. ECOWAS is the regional group of countries and will work with the West African Monetary Agency (WAMA) and central banks to help boost economic development in the region and to enhance cross-border trade. Countries will be able to move money without having to worry about exchange rates.
The new currency will be pegged to the euro, with the French Treasury guaranteeing its convertibility. While the euro remains the guarantor for all member countries of the WAEMU, the English-speaking countries of ECOWAS are not enthusiastic about aligning themselves with it. Ghana, for example, has stated that it will only adopt Eco if it is de-pegged from the euro.
Central bank of Nigeria (CBN) has reversed its foreign exchange regime
The Central bank of Nigeria (CBN) has recently reversed its foreign exchange regime. The new policy aims to increase liquidity and enhance efficiency of the foreign exchange market. It also aims to attract more foreign direct investment into the country. The new policy has been welcomed by many stakeholders, including the Chief Executive Officers of banks and the general public. However, critics have expressed concerns about the impact of the policy change on the economy.
The latest move by the CBN comes at a critical moment. Last week, the Dollar to Naira exchange rate in Naigeria was trading at N500 to $1 and was trading around N470 to $1 on Wednesday. The apex bank has advised exporters and beneficiaries to use forex proceeds for legitimate transactions and sell the rest in the Importers and Exporters window. It also says that operators of export domiciliary accounts will continue operating under current regulations.
Impact of the pandemic on the economy
In this report, the researchers analyze both quantitative and qualitative data on the impact of the pandemic in Nigeria. They also interviewed government officials in Lagos State and the Federal Government, including representatives from the Ministry of Humanitarian Affairs, the Ministry of Disaster Management, the Ministry of Social Development, and the Ministry of Finance, Budget, and National Planning. In addition, they interviewed public health experts with experience in urban poor communities.
The pandemic is already having a devastating effect on the economy of Nigeria. The World Bank has predicted that more than 10 million Nigerians will be living in poverty by 2022 due to the epidemic. But despite these dire predictions, the government has taken steps to protect its people from the worst effects. One such measure is the imposition of a lockdown on Lagos and Ogun states. Subnational governments have also followed suit.
Efforts to improve economic growth
The country’s productivity ranks low compared to other peer countries, which hinders long-term economic growth and job creation. A low productivity rate also leads to lower living standards. If this trend continues, Nigeria could see up to 30 million more people living in poverty by 2030. One way to address this problem is to invest more in human capital, which is defined as education, health, and training. This would increase the productive capacity of Nigeria’s workforce, increase its living standards, and boost the country’s productivity.
Nigeria’s economy is heavily dependent on resource extraction Biography, with oil accounting for 75% of government revenue. However, the oil sector is not very labor-intensive, which reduces the trickle-down effect of wealth. In addition, it squeezes out investments in other labor-intensive sectors. Countries that have labor-intensive economies typically have lower poverty levels.