Nigerian producers want the central bank to set a trading band for the naira to help stem weakness in the currency and reduce the impact on manufacturing costs.
The Manufacturers Association of Nigeria, an industry body, said limited dollar liquidity and high exchange rate costs had weakened industrial production since currency reforms were announced in June.
“Despite the recent reform to unify all forex windows, the exorbitant premium that persists between the official and parallel exchange rates has further stalled manufacturing operations,” it said in an emailed report on Wednesday. “The short-term remedy will require managing the floating exchange rate system.”
Source: Bloomberg
