The Central Bank of Nigeria's (CBN) announcement on Naira redesign policy and cash withdrawal limit, along with uncertainties surrounding the elections, has caused interruptions in economic operations and widespread hardship in Nigeria. Businesses are also dealing with the effects of COVID-19 and the instability brought on by the Russian-Ukrainian war. The government's decision to float the naira has led to a significant increase in the exchange rate.
Recall that the year started with the announcement by the Central Bank of Nigeria 's (CBN), on Naira redesign policy and cash withdrawal limit . This created interruptions in economic operations and widespread hardship in the first two months of 2023 (January & February 2023). According to stakeholders, the policy created a liquidity crisis and coupled with the uncertainties surrounding the elections, economic activities were almost grounded to a halt.
In addition to dealing with the effects of the cash crunch and an election with uncertain results, businesses were also attempting to recover from the effects of COVID-19 and adapt to the instability brought on by the Russian-Ukrainian war. Barely a month after the removal of fuel subsidy, the government, in an attempt to switch to a unified, market-reflective foreign exchange (FX) rate, decided to float the naira. Instantly the exchange rate moved from the official rate of N460/$ to ranges of N800 to N1099 and the parallel market went above N1300/$ at some poin
Nigeria Central Bank Of Nigeria Naira Redesign Cash Withdrawal Limit Economic Operations Hardship Elections Liquidity Crisis COVID-19 Russian-Ukrainian War Fuel Subsidy Foreign Exchange Rate Exchange Rate
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