You have probably started reducing your food consumption rate, and stopped buying some items you never thought you could scratch out of your shopping list – for example, Sardine?
How much is it in your area now? it probably cost you N500 to get one Sardine (even though it comes with two tiny fishes), but in some streets of Lagos, the two fishes, with neither head or tail, is sold for N700.
But before you start wondering how the rising dollar rate concerns you and the food items, let’s take you through memory lane of recent events.
Foreign exchange rates in Nigeria has been a major topic for discussion in recent times, as the Central Bank of Nigeria (CBN) continues to struggle to unite the official forex rates with the black market’s.
Currently, there is about N160 difference between the CBN-recognised Investors & Exporters (I&E) window dollar rate (where dollars is officially traded) and the parallel market.
This difference has its negative consequences on the cost of living in Nigeria and foreign trade activities as domestic and foreign transactions are dollar based – so when dollar rises, cost of food items follows same path.
In order to curb the rise of dollar rate and strengthen naira against the greenback, Godwin Emefiele, CBN governor, has been making several policies, including stopping the sales of forex to Bureau De Change operators, accusing them of aiding financial crime, while also devaluing naira.
He has also clampdown on a forex reference website, abokiFX, blaming the firm of manipulating black market dollar rate, but in all, no real positive effect has been experienced for a longterm, however, Nigerians have continued to bear the brunt in the short and medium term – as listed below.