Nigeria is hurting from a shortage of dollars and has been under pressure to devalue its currency, the Naira, ostensibly to reduce the widening gap between the parallel market and official exchange rates.
The West African nation’s President, Muhamadu Buhari, has however rejected the move supported by the Central bank that refused to cave in to the pressure at its monetary policy committee meeting last week.
The central bank made it clear this week that it will not seek to devalue the economy-Instead it has put in place a raft of measure to control hard cash out flows. Stopping importers of around 40 items from toothpicks to glass and wheelbarrows from buying foreign exchange.
Restricting the use of local debit cards overseas; lowering Automatic Teller Machine withdrawal limits and barring Nigerians from depositing hard currencies into their domiciliary accounts.
President Muhamaddu Buhari too echoed the anti devaluation stand-Saying devaluation would only pile more hardship on the majority poor.
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