Nigeria’s Swoop on Exporters for Dollars May Not Help Naira
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Nigeria’s currency is poised to weaken even after authorities threatened to cut the banking services of exporters who fail to repatriate their dollars in a bid to boost scarce foreign-exchange supplies.
The naira will probably depreciate more than 8% from current levels to 430 per dollar on the spot market this year because demand for foreign currency is just too overwhelming for any additional inflows from exporters to make a difference, said Michael Famoroti, the chief economist for Stears Data in Lagos.