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Forex challenge and policy options

How to Start Forex Trading From Home - A Proven Strategy?

By Arize Nwobu

THE challenge of foreign exchange, forex, in the economy has been recurrent over the years and it is for reasons that are fundamental and obvious. The Nigerian economy is monolithic in structure with oil accounting for 90 per cent of exports, 25 per cent of Gross Domestic Product and 80 per cent of government revenue.

The aberration readily exposes the economy to shocks in a globalised economy with changing perspectives. The economy quakes if the global oil market sneezes, and with a concomitant and substantial reduction in forex earnings and destabilisation of government projections.

The economy is also largely import- dependent. A recent report by the World Trade Organisation, WTO, noted that Nigeria was the number one importer in Africa and the 25th largest importer in the world. In a media report, former deputy governor of the Central Bank of Nigeria, CBN, Dr. Kingsley Moghalu, noted that the import bill in 2021 stood at N6.85 trillion which he said was the highest in 12 years. 

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