This is in regards to Nigeria’s currency (Naira) weakening and causing the ‘dollar shortage’ in the country to deepen.
In: Economics
That’s basically a symptom ot trust being lost in the Naira.
Imagine you’re in Nigeria, you have some wealth, but it’s in Naira, and you suspect they Naira might collapse. You then try to exchange it for a currency you trust more, for example USD. Now, you’re not the only one doing this of course, so USD get scarce and increase in value compared to Naira.
This behavior speeds up, or even causes, the fall of the value of the Naira, and as more people notice, more try to get rid of their Naira for something valuable before it lost ALL it’s value
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