NIGERIA has a plan to lure US$200 billion of inflows to Africa's biggest economy, reports Bloomberg News.
The Central Bank of nigeria will stop selling the greenback to local banks and instead ask lenders to source foreign currency on their own.
The regulator will offer long-term cheap credit to export-oriented producers, seeking to attract exporters to repatriate dollar proceeds and park that with banks.
By the end of the year, 'we will tell them, don't come to the central bank for foreign exchange again,' said governor Godwin Emefiele.
Nigeria's central bank has been struggling to boost dollar supply and has often changed rules.
Said Renaissance Capital Africa economist Yvonne Mhango: 'I'm not sure why banks will be more effective at getting exporters to repatriate their proceeds to Nigeria than the central bank,'
'Without any assurance that we will see a pickup in repatriation of proceeds if the central bank stops supplying banks, it could weaken the naira.'
The regulator set up an export support facility that will extend credit for up to 10 years.
SeaNews Turkey
The Central Bank of nigeria will stop selling the greenback to local banks and instead ask lenders to source foreign currency on their own.
The regulator will offer long-term cheap credit to export-oriented producers, seeking to attract exporters to repatriate dollar proceeds and park that with banks.
By the end of the year, 'we will tell them, don't come to the central bank for foreign exchange again,' said governor Godwin Emefiele.
Nigeria's central bank has been struggling to boost dollar supply and has often changed rules.
Said Renaissance Capital Africa economist Yvonne Mhango: 'I'm not sure why banks will be more effective at getting exporters to repatriate their proceeds to Nigeria than the central bank,'
'Without any assurance that we will see a pickup in repatriation of proceeds if the central bank stops supplying banks, it could weaken the naira.'
The regulator set up an export support facility that will extend credit for up to 10 years.
SeaNews Turkey
