3psmars

Friday 22.11

°C
Article Image

IMF disagrees with Buhari, insists on currency devaluation

The International Monetary Fund (IMF) has once again called on the Nigeria government to devalue its currency (Naira) by adjusting the official exchange rate of N199 to a dollar to a more market determined exchange rate.

The Washington-based body said in a statement on Wednesday that Nigeria’s economy was suffering from the impact of a sharp decline in oil prices, adding that naira devaluation is a necessity.

“Nigeria is facing the impact of a sharp decline in oil prices. Eliminating existing macroeconomic imbalances and achieving sustained private sector-led growth requires a renewed focus on ensuring the competitiveness of the economy”

However, IMF’s position differs from that of president Mohammed Buhari, who has insisted that Nigeria would not devalue its currency.

A former Secretary-General of the Commonwealth of Nations, Emeka Anyaoku, has warned that naira devaluation could trigger an economic disaster for the country, urging Buhari not to yield to pressure to devalue the currency.

IMF statement was released after its 2016 Article IV mission to Nigeria.

The body noted that the team met with Vice president Yemi Osinbajo, Minister of Finance, Kemi Adeosun, Minister of Budget and Planning, Senator Udo Udoma and the Governor of Central Bank of Nigeria (CBN), Godwin Emefiele.

IMF Managing Director,Christine Lagarde during her visit to the country in January had called on the Nigeria government to devalue its currency in order to address important economic challenges most importantly the impact of low oil prices.

According to the fund, foreign exchange restrictions introduced by the CBN to protect reserves have impacted significantly on segments of the private sector that depend on adequate supply of foreign currencies. Anyaoku said those calling for official devaluation of the naira need to come up with a good answer to Nigeria’s current problematic situation.

Read More

IMF disagrees with Buhari, insists on currency devaluationby Dibie Ike Michael with AGENCY  



Related Content

People's Parliament

2/12/2016

Proposal for first binding limits on airlines’ carbon emissions

Ban welcomes proposal for first binding limits on airlines’ carbon emissions – Welcoming a proposal by the United Nation’s International Civil Aviation Organization (ICAO) on the first binding limits on carbon dioxide emissions from the aviation industry, United Nations Secretary-General Ban Ki-moon called today for further strengthening of emissions standards as quickly as possible.

3PSMars Admin

3PSMARS Analytics

2/10/2016

Security Council boosts number of corrections officers for UN mission in Central African Republic

Security Council boosts number of corrections officers for UN mission in Central African Republic – Determining that the situation in the Central African Republic (CAR) remains a threat to international peace and security, the United Nations Security Council decided today to maintain the current personnel ceiling of more than 12,800 personnel in the military and police components of the UN peacekeeping operation in the country and to increase the number of corrections officers.

3PSMars Admin