Nigeria’s forex shortage may threaten bank liquidity – Moody’s

Banks have been providing trade finance to companies to cover the foreign exchange (FX) costs of imports, meaning they are on the hook if the companies fail to make the foreign currency payments, Moody’s said.

Nigeria regularly suffers from acute foreign currency shortages as the central bank tries to steady the naira. It currently trades at N460 per $1 officially, compared to around N750 on the black market, where it fell below N800 last year.

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