Farmers React to CBN Lifting Forex Ban on Rice As Naira Falls to N1,155 a Dollar

• Nigerian farmers have reacted to the decision by the Central Bank of Nigeria to lift the forex ban on rice importation
• They believe that the decision will help break the monopoly of local millers and reduce the cost of rice
• However, the CBN's decision is not helping the Naira's performance in the foreign exchange market

Farmers in northern Nigeria have praised the decision of the Central Bank of Nigeria to lift the Forex ban on the importation of rice.

Chairman of the Kano Council of Traders and Entrepreneurs, Alhaji Hassan Yaro, told Punch that the decision is good news as it will break the monopoly of the processing and marketing of the grain by local millers.

Yaro also believes that CBN's decision will help flood the market with grain and slash rice to an affordable rate for the common man.

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CBN decision and Naira exchange rate

Legit.ng reported that the Central Bank of Nigeria lifted the foreign exchange restrictions it placed on importers of rice and 42 other items eight years ago.

Since the decision to readmit the 43 items, the Naira has been on a free fall against the US dollar in the foreign exchange market.

BusinessDay reports that on Thursday, October 19, 2023, one dollar was quoted at N1,155, the lowest ever on the black market, known as the parallel market.

It added that in some parts of Abuja, dollars traded at N1,150; in Lagos, some traders sold at N1,155; and in other areas at N1,120/$1.

At the official market, data from FMDQ securities shows that the Naira closed at N782.68 against the US dollar on Thursday.

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This is an appreciation compared to N790.68 a dollar quoted on Wednesday, October 18.

Yemi Cardoso unveils his plans as CBN Governor, promises shift From Emefiele's Policies.

An earlier report by Legit.ng revealed that Cardoso has promised a policy shift in the future direction of the apex bank.

One of Cardoso's plans is to shift CBN's focus away from direct involvement in development finance initiatives, a hallmark of former Godwin Emefiele's leadership.

Source: Legit.ng