As part of its forex rationing strategy and to encourage domestic production, authorized dealers have been asked to discontinue the processing of applications for the sale of forex for the import of maize.
Economists are of the view that the alignment of the exchange rate to its market value is a more potent and effective tool for changing consumer behaviour than administrative controls.
Maize has been a subject of various measures in the past and is still produced sub-optimally in Nigeria.
In the Commodities session on Channels TV, the FDC Think Tank analyst discusses the short and long term impact of these restrictions on markets, inflation and supply.
Do enjoy the read…