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Tuesday,
July 14, 2020 / 06:07 PM / FDC / Header Image Credit: FDC Ltd
As part of its forex rationing strategy and to
encourage domestic production, authorized dealers have been asked to
discontinue the processing of applications for the sale of forex for the import
of maize.
Economists are of the view that the alignment of the
exchange rate to its market value is a more potent and effective tool for
changing consumer behaviour than administrative controls.
Maize has been a subject of various measures in the
past and is still produced sub-optimally in Nigeria.
In the slides below in the Commodities session on Channels TV, the FDC Think Tank
analyst discusses the short and long term impact of these restrictions on
markets, inflation and supply.
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