This is in regards to Nigeria’s currency (Naira) weakening and causing the ‘dollar shortage’ in the country to deepen.
In: Economics
One thing not really touched on by other commenters is the import aspect. People bringing in goods want to be paid in something at least sort of stable. Plus something that’s easy to exchange. Nobody outside of Nigeria wants Naira, but everyone will trade in dollars. So if an importer is bringing in a load of steel, they want to be paid in dollars. But it is hard for the company buying the steel to get dollars, since there are fewer in the country that the demand for them. So they have a shortage.
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