Playing god in Nigeria's foreign exchange market
The Central Bank's FX quest. Source: Stears Business

There is an economic model to explain almost everything. 

The Economic Naturalist is a book by Robert H Frank that uses economics to answer questions like why is there a light in your fridge but not in your freezer? and why is it easier to find a partner when you already have one?

It makes for a fun read, but economists also have more complex models which they use to answer the more significant questions that governments and businesses face.

Today, Nigeria’s central bank is facing a currency crisis. We’re all facing it. And in many respects, it is doing more harm to the economy than the other problems on the 2020 list: Nigerian Covid-19 cases and a shortfall in government revenues. 

The pandemic is new, but Nigeria has been here many times before. Only four years ago, the naira was in trouble. Everyone knew about the “dollar scarcity”, and

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Tokunbo Afikuyomi, Jr.

Tokunbo Afikuyomi, Jr.

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