Naira under pressure, Nigeria may seek dollar loan –IMF

The International Monetary Fund has said the naira is currently under pressure and Nigeria is free to seek loan from the Fund to stabilise the currency if it considers it a good option.

The Washington-based lender however said that recent exchange reforms and other steps taken by the Nigerian authorities were in order.

It also expressed support for Olayemi Cardoso-led Central Bank of Nigeria’s last week’s decision to halt the eight-year foreign exchange ban on cement, rice, poultry products and 40 other items.  The past administration of the CBN had imposed the forex ban in 2015.

They made this known at the World Bank Group/International Monetary Fund Meeting in Marrakech, Morocco.

IMF said inflation in Nigeria was still high at 26 per cent in August while the naira continued to be under pressure.

The local currency, which fell from about 450/dollar to an average of 760/dollar following the exchange reforms of the President Bola Tinubu, has continued to drop at the parallel market.

The local currency plunged to 1045/dollar on Thursday.

While reiterating the need to tighten monetary policy by raising the Monetary Policy Rate and mopping up excess naira liquidity, the bank said foreign exchange market confidence could benefit from more clarity on Central Bank of Nigeria dollar obligations.



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Sydney Okafor

I am so passionate about this my profession as a broadcast journalist and voiceover artists and presently a reporter at TV360 Nigeria

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