BREAKING NEWS; Dollar Shortage Affects Business And Education — See Details

BREAKING NEWS; Dollar Shortage Affects Business And Education — See Details

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There has been the scarcity of the United States dollar in this year 2016 than other years. As at the moment a dollar goes for N425. This dollar shortage which was caused by a fall in oil revenues, has affected the ability of manufacturers to import of raw materials and spare parts thus forcing many businesses that rely on these to shutdown.
Not only has the dollar shortage affected businesses, but also the education of some individuals. With the resumption of schools abroad closing in, some parents have found it hard to pay the tuition fees of their wards and this if not resolved soon will result in a delay in the education of such children.
The situation is worsened by the recent directive given by Nigeria’s central bank to commercial lenders requiring them to allocate 60 percent of their foreign exchange purchases to manufacturers, in a bid to boost their ability to pay for imports and boost the economy.
With all these, currency dealers insist that even the apex bank does not have enough dollars to play in the market, not to talk of banks which also have been mandated to sell dollars to Bureau De Change (BDC) operators.
The apex bank previously spent about $2 billion annually on foreign school fees remittances, the new forex regime however is not able to meet such enormous demands. As records show that weekly dollar turnover on the interbank forex market (spot) has dropped to $600 million presently compared with the $2 billion available as at August last year.
Efforts are however being made to lower the dollar shortage in the country and the federal government, central bank and commercial banks are all actively involved in the process.

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