Forex policy could worsen food shortages –Economist

http://newtelegraphonline.com/forex-policy-worsen-food-shortages-economist/


The Economist magazine has said that unless the Central Bank of Nigeria (CBN) adopts a flexible exchange rate policy, food shortage problem in the country may worsen. In its just released edition, the magazine which in July last year slammed the CBN’s forex ban on some items, said that the apex bank’s foreign exchange policy has resulted in food shortages and a steep increase in prices. “The mutterings of discontent are growing louder in Nigeria’s street markets.


The price of a bag of rice has surged by 12.5 per cent in the past month. Supplies of bread have dwindled after bakers turned off their ovens to protest about the rising cost of flour. The rich lament that milk is missing from supermarket shelves.


The poor complain about the price of garri (cassava flour). A fish importer estimates that 70million Nigerians can no longer afford his wares. Such are the symptoms of Nigeria’s foreign-exchange crisis,” the magazine stated.