Smooth way to sell NGN against USD, GBP, EUR, CHF
Bringing
eggs or any other goods from Liberia to Nigeria allows Obj to get
foreign currency. The eggs are imported thus the Nigerian importer -
maybe
Obj again - buy them against USD. The CBN will have to allocate USD to
Obj in Nigeria for paying the importet eggs to Obj in Liberia.
These
USD then can be used to buy EUR, CHF, GBP as well as other currencies
to be invested abroad. Perfect way of getting money OUT of Nigeria.
Nigeria's
foreign exchange market is highly regulated. Nigerians cannot buy USD,
EUR, GBP, CHF against NGN for financial investments abroad.
If
so a lot of Nigerians - mainly deep pockets - would sell NGN against
such currencies to flee the country. The effect of this would melt down
the Central Bank of Nigeria's - in fact Nigeria's - foreign currency
reserves meant for importation.
One
reason as to why Nigeria is lacking money for investments is that a lot
of wealthy Nigerians do not trust their own country, also they do not
trust their own population.
If
all Nigerian owned money would be repatriated to Nigeria for developing
her infrastructure as well as her domestic economy that country's
wealth would boost for the benefit of a lot of people struggling for
their daily square meal.
Just bluntly ask the finance minister as well as the new CBN governor.
copyright thomas ramseyer
