Taxes on the bourse    Damage to Turkey's standing    Slow-cooked or raw Brexit?    Egypt ‘shocked and distressed' by Ethiopian PM's comments on GERD    Lebanon PM seeks foreign support for reforms amid protests    UK lifts four-year ban on flights to Egypt's Sharm el-Sheikh    NBE leasing arm receives EGP1bln loans from 5 banks    President Sisi arrives in Sochi for Russia-Africa Summit    Live score: Juventus v Lokomotiv Moscow (UEFA Champions League)    Israel's Netanyahu gives up effort to form new government    Beckham's stadium complex for Inter Miami taking shape    Tennis: Hewitt happy to end Davis Cup exile of "different" Kyrgios    Saudi profits from corporate earnings, Qatar extends losses    Canada's Trudeau retains power in election but will have minority government    Egypt's parliament endorses €205 mln loan deal with EBRD to upgrade Cairo Metro's first line    Liverpool's Egyptian star Mohamed Salah among 2019 Ballon d'Or nominees    Egypt's train fares to not increase until developing services – minister    Oil steady on weak demand worries despite U.S.-China trade optimism    Liverpool's Egyptian winger Salah ruled out of Manchester United clash    European markets seen cautiously higher as Brexit uncertainty returns    WHO hails 'triumph' as Ebola vaccine gets European green light    Current and ex smokers may lower lung cancer risk with exercise    Egypt's Sisi praises SCC's role in protecting justice, rights, freedoms    France's President Macron receives Egypt's Coptic Pope Tawadros II at Elysee    After a young pupil dies of meningitis in Egypt, tips to help prevention    French President Macron receives Egypt's Coptic Pope Tawadros II at Elysee    Grand Nile Tower Arts & Cultural Centre launches second round    Egypt's coach Hossam El-Badry satisfied with winning start despite technical problems    Luxor's new discoveries    Moroccan film Nomades scoops awards in Alexandria Film Festival    Six authors vie for Booker prize 2019, Atwood in the lead    In Photos: A sneak peek into rehearsals for the Cleopatra ballet world premiere    Sisi: army engaged in attrition phase against terrorism in Sinai since 2013    Sisi, Ethiopia's PM to meet in Moscow to discuss GERD issue    Sisi, Ethiopia's PM agree to overcome obstacles in Nile dam talks    Farwell to Egyptian comic actor Talaat Zakaria    Court sentences six to death, 41 to lifetime imprisonment violence related case    Trump says he would release Mideast peace plan after Israeli elections    ACWA Power compares 3 bids to supply production units for Luxor power station    What do you know about gold alloying?    NBE announces EGP 2.5m prizes for handball youth teams for their world achievements    Jennifer Lopez evokes Egyptian outrage post her North Coast performance    Al-Sisi honours Egypt's scholars on Science Day    IS claims responsibility for suicide bombing killing 63 in Afghan wedding    Political parties gear up for parliamentary, senate, local elections    Unprecedented Glory: Egypt win Men's U-19 World Handball Championship    12th National Egyptian Theatre Festival fuel up public theatre art scene    Ministry of Environment has a plan for "black clouds season"    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Nigeria president tells central bank to stop providing FX for food imports
Published in Amwal Al Ghad on 14 - 08 - 2019

Nigeria's President Muhammadu Buhari has told the central bank to stop providing funding for food imports, his spokesman said in a statement on Tuesday.
The move has raised questions about the bank's independence.
Nigeria, which has Africa's biggest economy, is the continent's top oil producer and relies on crude sales for around 90 percent of its foreign exchange. Low oil prices led to a recession in 2016 from which the country emerged two years ago.
Since Buhari first took office in 2015, Nigeria's central bank has presided over policies aimed at stimulating growth in the agricultural sector to reduce dependence on oil. Those policies included a 2015 ban on access to foreign exchange for 41 items that the bank felt could be produced in Nigeria.
"President Muhammadu Buhari … disclosed that he has directed the Central Bank of Nigeria (CBN) to stop providing foreign exchange for importation of food into the country," Tuesday's statement said.
"Don't give a cent to anybody to import food into the country," Buhari said, according to the statement, which said that the call was in line with efforts to bring about a "steady improvement in agricultural production, and attainment of full food security".
"The foreign reserve will be conserved and utilised strictly for diversification of the economy, and not for encouraging more dependence on foreign food import bills."
The latest move comes only weeks after Central Bank Governor Godwin Emefiele in July said the bank would ban access to foreign exchange to import milk.
Tuesday's statement prompted many observers to point to the central bank's status as an independent body.
"The central bank act of 2007 makes it clear that the bank is independent. It is not supposed to be taking direct instructions from politicians," said Kingsley Moghalu, who served as deputy central bank governor from 2009 to 2014.
"The trajectory in this administration is that we have seen a very clear tendency for the president to direct people. Increasingly Nigeria's institutions have lost independence," said Moghalu, who was a contender in February's presidential election.
Bismarck Rewane, an economist and the head of Lagos-based consultancy Financial Derivatives, also said the bank was supposed to be independent.
A central bank spokesman did not immediately respond to phone calls and text messages seeking comment.
Buhari has been a vocal supporter of such restrictions and one of his first moves after his re-election in February was to reappoint the central bank governor.
Rewane said a curb on foreign exchange for food imports could backfire after Buhari last month signed up to the African Continental Free Trade Agreement (AfCFTA). That deal seeks to create a continent-wide free trade zone where tariffs on most goods would be eliminated.
"At this point in time these rules will be manipulated in the interest of smugglers and their accomplices," said Rewane.
Import controls on rice, imposed even as local farmers fail to meet demand, have kept prices artificially high and led to smuggling from neighbouring Benin into Nigeria.
Source: Reuters


Clic here to read the story from its source.