Cash Crisis Hits Nigeria Cocoa Exports in Fresh Blow to World Supply
- Exporters are suspending operations due to lack of cash
- New York cocoa futures rallied this week to a one-year high
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Nigeria’s cocoa exports are coming under threat from a shortfall of cash to pay laborers and transporters, further straining global supply.
The country’s central bank in October announced it would redesign 200-, 500- and 1,000-naira notes in a bid to mop up excess cash and rein in inflation. As much as 2.1 trillion naira ($4.6 billion) has been returned to banks, and the policy has led to a severe shortage of bills as people have been unable to get new notes after depositing their old denominations.