The central bank of Nigeria has had its fair share of bad decisions. Restricting foreign exchange capital and failing to increase the volume of liquid asset the Naira has had to take the brunt of the force. In its latest decision the bank increased monetary policy rates to 14%. Justified by the bank as a means to promote growth the decision may become fatal to the economy in the near future.
The central bank claims the rise of 2% will help foreign exchange volumes to increase in the country as they try and shore up the ailing Naira. The naira has fallen to rates of around 375/$ on the parallel market. The bank claims there will be increased availability of foreign reserve. This would clearly lead to an increase in manufacturing as industries primarily rely on imports and foreign materials.
Analysts and financial advisors have particularly called the bank out for the decision. Many have attributed the recent change to a decrease in availability for the funding of small business. Making it harder for business to borrow has the domino effect of unemployment and ultimately recession. This could be avoided as analysts simply indicated that producing more money could well be the short term solution to the financial troubles facing Nigeria as a result of the CNB.
To conclude the latest decision may be fatal for the economy of Nigeria as analysts predict further unemployment and further inflation. The Naira is already teetering at sensitive levels and this decision may push it into recession levels depending on the reactions from investors worldwide. However Bitcoin can prevent your assets from rapidly loosing value. Currently sitting at around the $655 level the prices have remained solid for a number of weeks. Head on over to the NairaEX exchange to purchase some Bitcoin at market leading prices!