Nigeria Named Among 15 African Countries Earning Highest Forex Through Exports
- Many countries in Africa depend on foreign trade to shore up their forex liquidity which makes it easy to participate in foreign trade
- Currently, Nigeria and Kenya have been hit with acute dollar scarcity, which is threatening imports and the cost of goods
- About 15 African countries have been identified as being the highest earners of foreign exchange
About 15 African countries have been named as the highest earners of foreign exchange on the continent.
Countries around the world depend on international trade to boost their forex liquidity as they participate in global trade.
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Why countries need forex
The reason is that the countries are mostly interdependent as they trade commodities among themselves.
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According to Investopedia, international trade is the exchange of goods and services between countries which allow them to expand their markets.
For most African countries, foreign trade is important due to need to import products and services they don't produce. They export their products which are mainly raw materials earn them earn foreign currency to boost their external reserves.
About 15 countries in Africa have the most foreign exchange through the export of their goods and services.
According to Business Insider, Nigeria and Kenya are grappling with acute dollar scarcity and experts say the solution lies in these countries exporting more products.
Countries with highest dollar flow:
- South Africa: $130.6bn
- Nigeria: $63.7bn
- Angola: $27.5bn
- Ghana: $23.2bn
- Democratic Republic of Congo: $21.6bn
- Ivory Coast: $18.1bn
- Kenya: $11.7bn
- Zambia: $11.6bn
- Tanzania: $9.7bn
- Republic of Congo: $9.4bn
- Guinea: $8.5bn
- Ethiopia: $8.4bn
- Cameroon: $8bn
- Zimbabwe: $6.7bn
- Senegal: $6.1bn
Commercial Banks in Nigeria Groan Over Forex Scarcity as Diaspora Remittances Hit $60.2 Billion in Three Years
Recall that Legit.ng reported that commercial banks in Nigeria are groaning over an unprecedented forex crisis which seems to have worsened in the last few days as the Central Bank of Nigeria embarks on efforts to strengthen the local currency, which dipped to an all-time low penultimate week.
Checks by Legit.ng show that the scarcest of them is the US dollar which seems to be in short supply followed by the pounds sterling.
Visits to some commercial banks in Lagos State show that most of them have run short of the US greenback and are giving excuses to their customers.
Source: Legit.ng
