IMF praises Central Bank of Nigeria’s flexible forex ploicy

June 20, 2016
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The International Monetary Fund (IMF) has hailed the decision by the Central Bank of Nigeria (CBN) to abandon its currency peg and adopt a flexible exchange rate policy, saying this was important to reduce fiscal and external imbalances.

IMF spokesman, Gerry Rice, said that the Fund wanted to see how effectively the Naira exchange market functions once the new float system is put into effect next Monday.

Mr. Emefiele, the CBN governor had said in a letter to President Muhammadu Buhari that the apex bank expected the Naira to settle at around 250 to the dollar after it abandons the peg of 197 to the dollar it has supported for 16 months.

Senior IMF officials, including Christine Lagarde ,Managing Director, have urged the Federal Government to allow the Naira to fall to absorb some of the shock to the economy from a plunge in oil prices and revenues.

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