DON'T MISS : Talking Africa New Podcast – "The dance of the politicians" – popular anger in South Africa, Sudan and Algeria

IMF calls for further devaluation of Nigeria’s currency

Posted on Thursday, 22 October 2015 10:26

The pressure from the IMF on Nigeria’s currency is triggered by President Muhammadu Buhari’s long-awaited Cabinet appointments, which are five months overdue, and do not include economic champions to mastermind much-needed reform.

They are already making it harder for the average person to buy milk

“There’s no economist on the (Cabinet) list that can suggest to the government ways to improve revenue generation and how to run the economy,” Garba Kurfi, managing director of APT Securities and Funds, told reporters.

Last year, Nigeria’s central bank devalued the naira by 8 per cent in November, and then fixed the official exchange rate at 198 to the US dollar.

The Nigerian central bank also restricted access to foreign currency and banned a long list of imports to save the naira.

However, the International Monetary Fund’s Africa director, Antoinette Sayeh has said the restrictions are instead, “quite detrimental”.

“They are already making it harder for the average person to buy milk,” she said at the just concluded IMF annual meeting in Peru.

Saveh called for a review of the restrictions and for officials to “permit the exchange rate to continue to adjust”.

The IMF is pessimistic about Nigeria’s chances of turning its political and economic situation around and has urged the country to further devalue its currency.

According to reports, the naira has lost 25 per cent of its value in the past year and the stock market plunged by a fifth last year and by 14 per cent this year.

Political uncertainty and the falling oil prices have been identified as cause of the current naira devaluation.

Nigeria, Africa’s biggest oil producer and economy continues to face turbulent times in the monetary market.

Currently one dollar sells at 222 naira at exchange bureaus.

We value your privacy

The Africa Report uses cookies to provide you with a quality user experience, measure audience, and provide you with personalized advertising. By continuing on The Africa Report, you agree to the use of cookies under the terms of our privacy policy.
You can change your preferences at any time.