Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,195,584 members, 7,958,803 topics. Date: Thursday, 26 September 2024 at 01:46 AM |
Nairaland Forum / Nairaland / General / Business / Efforts To Save The Naira Have Crumbled, Says IMF (442 Views)
A Bank Is Frustrating Our Efforts To Recover Our Late Dad's Money. Help!!! / Naira Overvalued By 20%, Says IMF / ‘this Is Why The Naira Fell Despite CBN Intervention’ – ABCON (2) (3) (4)
(1) (Reply)
Efforts To Save The Naira Have Crumbled, Says IMF by Calmzin(m): 8:44pm On Jan 13, 2017 |
The International Monetary Fund (IMF) says
efforts to save the naira by rationing foreign
exchange have gradually crumbled.
The IMF also said the challenges around foreign
exchange in Nigeria have pushed inflation to
double digits in Africa’s largest economy.
This is coming a year after Christine Lagarde, IMF
managing director, met with the main players in
the Nigerian economy, including Kemi Adeosun,
minister of finance; Godwin Emefiele, governor of
the Central Bank of Nigeria (CBN) and President
Muhammadu Buhari.
Lagarde, at the time, called for subsidy removal
and devaluation of the naira — both of which have
been done.
In its policy paper on macroeconomic
developments and prospects in low-income
developing countries (LIDCs), unveiled on
Thursday, the IMF said the failures in the economy
were due to “delayed/poorly managed policy
adjustment”.
“There were sharp movements in currencies across
many LIDCs during 2015. Further sizeable
depreciations were recorded in 2016 in commodity
exporters under stress,” the paper read.
IMF said this includes “Mongolia, where reserve
levels have been significantly eroded, and Nigeria,
where efforts to support the naira through foreign
exchange rationing have gradually crumbled”.
“Inflation has risen to troubling levels in a handful
of cases, concentrated in sub-Saharan Africa.
Among commodity exporters, large exchange rate
depreciations were a key contributor in
Mozambique, Nigeria, and Zambia”.
The IMF blamed the failures on lack of business
confidence in conflict zones and delay in policy
adjustment by the country’s leadership.
“Domestic policy failures cited include delayed/
poorly managed policy adjustment to lower
commodity prices — as in Nigeria, where foreign
exchange rationing adversely affected debt service
capacity of many corporates.
“Nigeria (is) affected by Boko Haram-led attacks in
the north and disruptions to oil production in the
Niger Delta region. Aside from direct damage and
increased security outlays, conflict situations
undermine business confidence, investment, and
tourism.”
The fund also said Nigeria’s financial
developments affected neighbouring countries like
Chad, which also plunged into a recession, and
Benin.
“External developments have predictably played an
important causal role in the emergence of financial
sector stress, through falling commodity prices,
declining remittances, and adverse spillovers from
neighbors — as in the impact of Nigeria’s
economic difficulties on Benin.
“That said, teams’ assessments indicate that poor
macroeconomic policies and weak supervision
have also played a significant contributory role. |
(1) (Reply)
Guaranty Trust Bank Allegedly Laundered Over N1.5 Billlion For Saraki / Advertise Your Business In Nigeria With Articles On Articlepost.com.ng / Loan For Your Business Expansion And Development Without Collateral
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 8 |