Nigeria: Border Closure - West African CFA Franc Crashes

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^^ CFA Franc spending countries in West Africa

Lagos — The West African currency, CFA Franc, has crashed against the Naira to a new record low at the open market trading at 5680 CFA to N1000 due to the closure of Nigeria's land borders.

The nation's borders in four regions were shut down at the instance of a directive from the Office of the National Security Adviser (NSA) owing to the state of insecurity in the country.

Currently, the CFA has plummeted at the open market from 6890 before the closure, to a new record low of 5680. Also, the price per bag of a 50kg bag of rice which sold for between N10,000 and N11,500 has further crashed to between N8000 and N9000 depending on brand.

But the reverse is the case in Nigeria as investigation showed that whereas rice smuggling through the land borders has been effectively reduced, it has forced the market price of the commodity to surge from N14,000 or N18,000 to N19,000 per bag presently.

Consequently, smuggling through the waterways had never been so enticing as the smugglers understand that the only force they have to contend with is the Nigerian Navy, but whose primary and secondary concerns were crude theft prevention and seizure of adulterated diesels, instead of rice smuggling.

Traders and residents at the Seme border told Daily Trust that the prices of some commodities still witnessed a slight increase at the Benin Republic side of the border while the reverse is the case in Nigeria.

Economic and financial experts are however divided over the outlook for the Naira throughout the remaining part of the year; many have said the local currency may appreciate further in the coming months if the nation's borders remain closed beyond the stipulated 28 days mapped out for the ongoing joint exercise code named 'Exercise Swift Response'.

Also, according to a bureau de change source, currency traders were taken unawares by the new development.

The Nigeria Customs Service (NCS) exercise, with backup of the Joint Security Taskforce flagged off, few days back may have successfully achieved a water-tight, anti- smuggling land border closure, forcing smugglers to take to the sea instead.

https://allafrica.com/stories/201909190056.html

FOD, puskin, dominique, naijacutee, Mynd44, Lalasticlala, Seun

These countries are hell bent on flooding the Nigerian market with imported foreign rice... even resorting to smuggling through the waterways? That is some real desperation.
They had better develop an alternative economy rather than depending on smuggling in of contraband produce and smuggling out of hydrocarbons from Nigeria to make a living!

Who are those importing rice and other banned products from these countries.... Nigerian

Are you kidding me

2special:
Who are those importing rice and other banned products from these countries.... Nigerian

Which is exactly why the government closed off the border. Some of the items being smuggled shouldn't even be smuggled if Nigeria was functioning at even 30% the ideal... Imagine smuggling Sugar, Vegetable oils and Macaroni through the border. I just laugh.
But In my opinion this is just a short term solution to the issue, and it would need deeper structural reforms both economic and otherwise to make any long lasting changes to the issue of smuggling.
We can blame our neighbors all we wan't but the truth is that Nigeria itself has got to get its house in order.

Under Jona a thousand naira was 3k cfa....wake me up when it gets to 3k under Baba

Bouncingbabyboy:
Under Jona a thousand naira was 3k cfa....wake me up when it gets to 3k under Baba

And under Jona, Crude oil prices was closer to $100 per barrel... stop talking out of context and set bitter politics aside for once in your life.
Oh wait...I forgot ! This is Nairaland, where most people don't understand micro or macro economics but tie everything to the person or party occupying the executive position at any given time.

scholes0:


And under Jona, Crude oil prices was closer to $100 per barrel... stop talking out of context and set bitter politics aside for once in your life.
Oh wait...I forgot ! This is Nairaland, where most people don't understand micro or macro economics but tie everything to the person or party occupying the executive position at any given time.

Buharis policies killed the naira.....Mr economist weh no sabi anywhere except him father compound

Bouncingbabyboy:
Buharis policies killed the naira.....Mr economist weh no sabi anywhere except him father compound

Don’t be daft Buharis policies is more or less negligible in the grand scheme/ longer term.
It is verg easy to blame Bubari for everything, but the truth is that fiscal policies can only be properly managed by the right economic term in the shorter term.

I guess Buhari is also managing Angola, Gabon, Venezuela and Canada whose currencies have all massively depreciated since the oil price crash.
Mr smart man hold fish tail.

YourNemesis:


Don’t be daft Buharis policies is more or less negligible in the grand scheme/ longer term.
It is verg easy to blame Bubari for everything, but the truth is that fiscal policies can only be properly managed by the right economic term in the shorter term.

I guess Buhari is also managing Angola, Gabon, Venezuela and Canada whose currencies have all massively depreciated since the oil price crash.
Mr smart man hold fish tail.

Buhari is the only president to take us into Recession twice (1) as a general (2) as a president.....bros are you thinking with your armpit??

If they did this to strongarm these countries into supporting some policies, I would be surprised at the cunning and bad faith. However, I don't think Mr President does 3D chess.