This means that Nigeria is no longer the leading country in Africa when it comes to GDP manenos if we use the Black Market rate. Egypt takes that throne. We wuz kangz
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GDP is measured in USD not Naira. How do you think the Kenyan economy be growing at 5-6 % yet the Shilling is always going down?
Waah, what the hell is wrong with Kenyans, let me break it down for you.
The current GDP that has Nigeria leading was calculated when the exchange rate was at maybe 360 Naira to 1 dollar. Since then, the Naira has depreciated badly until it has reached a black market rate of 1000 Naira to the dollar which their Central Bank won’t acknowledge. Even then, if we calculate their gdp using their official Central Bank rate, their total output in USD would be much lower. Same case the depreciating shilling adds more debt to existing external debt. In 2013 while we were borrowing money, the shilling was at 90 bob, right now, it’s at 120 and that adds some huge figures in our debt repayment
It’s extremely difficult to get dollars from Nigerian banks. That’s why that black market exists. Yaani even getting $100 will take you days. Even with a dollar account they restrict your use to $300 a month. So that black market rate exists only for such.
Jamaa is talking about $10m from a bank. Only Dangote can get such.
well-connected Nigeria politicians are using the arbitrage to mint free cash
No sir. The black market rate only exists mostly for people with illegitimate reasons for a dollar. Illegal transactions. Thus, the market is very limited. If you have a genuine reason eg travel, bank will give you your dollars. Which means not many can profit from that arbitrage. That’s a crook selling to a crook. By the time crooked employees are selling them to you from the bank, you are buying them at 600-700 Naira ( 450 to bank 300 to bank manager). And with volatile black market rates, how much profit can one really make.