A member of the Central Bank of Nigeria’s monetary policy committee wants the central bank to review personal transactions that qualify for dollars at the country’s official exchange rate as a way to help cushion scarcity of the US currency plaguing the West African country.
(Bloomberg) — A member of the Central Bank of Nigeria’s monetary policy committee wants the central bank to review personal transactions that qualify for dollars at the country’s official exchange rate as a way to help cushion scarcity of the US currency plaguing the West African country.
Nigeria allows citizens to purchase dollars at the official exchange rate of about 429 naira for specific services, including foreign tuition and medical expenses. That is a deep discount on the widely-used black market rate of about 700 naira, which has shot up in recent months amid a widespread dollar shortage.
“If parents are willing to fund the very expensive foreign education, it will be far cheaper for them to educate the children in the most expensive and good private schools in Nigeria,” Idiahi Obadan said after the committee’s July 18-19 meeting, according to a statement published by the bank on its website.
Africa’s largest economy has been rationing the greenback following a drop in oil production, which accounts for over 80% of its foreign exchange earnings. That has left companies struggling to pay foreign suppliers and loans.
Read: Nigeria Cracks Down on Forex Hoarders to Stem Naira Crash
The Nigerian school and university systems are underfunded, leading many Nigerians who can afford it to educate their children abroad.
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