According to a report by the United Nations Conference on Trade and Development, a combination of high food costs and a strong currency is having a detrimental impact on people in Nigeria and other developing nations. According to the organization, the world has experienced three significant rises in food prices this century.
The report claims that this confluence is forcing many people living in these nations to make difficult decisions to make ends meet, like skipping meals or pulling a child out of school.
It claimed that the dollar’s value decreased during the first two price surges. The Federal Reserve raised interest rates in an effort to battle excessive inflation in the US, which led to a little increase in the value of the US dollar. This made the US dollar and the food that developing countries buy with it more expensive.”
According to UNCTAD, developing countries face a double burden of high food prices and the depreciation of their local currency against the dollar, and with national budgets stretched thin, net food importers are in a vulnerable position.