Friday, March 4, 2016

$20bn hoarded in Nigerian bank accounts

Nigeria's central bank says that some wealthy Nigerians are hoarding $20bn in their foreign exchange bank accounts.
The bank's governor Godwin Emefiele told lawmakers that the hoarding threatens the value of Nigeria's currency, the naira.
This warning comes as the government and the central bank try to maintain the currency's value at just under 200 naira to the dollar.
But its black market rate is much lower than that partly due to the scarcity of foreign exchange in the country.
Mr Emefiele also alleged that some individuals were damaging the value of the naira through currency speculation. 
Nigeria is heavily dependent on oil sales for government revenue and foreign exchange. 


The recent fall in the oil price has depleted the country's foreign exchange reserves.

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