Flash Report /
Nigeria

Central Bank of Nigeria adds fuel to the FX fire by banning BDCs

  • Policy rate left at 11.5%, in line with expectations, with CBN continuing to prioritise growth over price stability

  • BDCs are banned from accessing FX, which will lead to further FX shortages and depreciation on the parallel market

  • In turn, this undermines CBN attempts to boost growth and rein in inflation, and decreases chance of FX liberalisation

Central Bank of Nigeria adds fuel to the FX fire by banning BDCs
Patrick Curran
Janet Ogunkoya
Janet Ogunkoya

Senior Research Analyst

Tellimer Research
27 July 2021
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