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IMF Hints At Fresh Devaluation, Says Naira Is Overvalued - Business - Nairaland

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IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by ijustdey: 6:49am On Apr 06, 2017
The International Monetary Fund (IMF) says the Nigerian naira is overvalued by about 10 percent to 20 percent.

Speaking at a news briefing in Washington on Wednesday, Gene Leon, IMF mission chief for Nigeria, said the Nigerian government has acknowledged the need for reforms, but must implement its reform plans.

“The Nigerian economy has been hit by lower oil prices and lower production and the need for adjustment is recognised by the government,” Leon said.

“They have started in articulating the economic recovery and growth plan and what needs to happen now is that plan needs to be implemented and continue in a very resolute way.”

He also said that the IMF sees a need for a foreign exchange adjustment, in a bid avoid a disorderly depreciation of the naira.

“We do find there to be some over-valuation at this point of the naira, of the official currency, somewhere to the tune of 10 to 20 percent.”

The IMF Staff country report, which was unveiled on Wednesday also showed that Nigeria’s multiple devaluation between 2014 and 2016, affected the private sector, especially the banks.

“During the past year, banking sector growth was dominated by the impact of a depreciating naira, given 45 percent of the banks’ loan book is in foreign currency,” the IMF staff report read.

“The depreciation of the naira may in some cases benefit those banks with FX assets that outweigh their FX obligations, through net valuation gain.

“However, FX risks either from a shortage of FX or further naira depreciation could also lead to defaults, which will increase required provisioning and reduce profits.

“With about 45 percent of loans and 40 percent of NPLs in foreign currency, a further depreciation of the naira by 50 percent would increase NPLs net of provisions to capital by 12 percentage point (from 28 to 40 percent)”.


https://www.thecable.ng/imf-hints-fresh-devaluation-says-naira-overvalued

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by Ahmed0336(m): 6:51am On Apr 06, 2017
This IMF na enemies of progress. Make dem come devalue am make we see.

77 Likes 4 Shares

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by acenazt: 6:55am On Apr 06, 2017
Imf and bad news be like Tb Joshua and lie lie prophecy

18 Likes 1 Share

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by absoluteSuccess: 7:32am On Apr 06, 2017
Is dollar not overvalued?

Why must naira be 'undervalued'??

Naira is not yet valued as it should be.

We need to bring back the kobo.

#BringBackOldGloryBuyWithnaira&kobo.

61 Likes 3 Shares

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by ephi123(f): 10:48am On Apr 06, 2017
IMF should leave us alone!!

28 Likes 3 Shares

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by snipesdam(m): 10:48am On Apr 06, 2017
angry

1 Like

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by ifedayor: 10:48am On Apr 06, 2017
..
Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by cosmatika(m): 10:49am On Apr 06, 2017
Ok
Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by slys(m): 10:50am On Apr 06, 2017
Overvalued ke?... wetin dey worry this moda fuckers

5 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by larryUG(m): 10:50am On Apr 06, 2017
Bastards.

6 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by Tazdroid(m): 10:50am On Apr 06, 2017
International Moza Fvckaz

52 Likes 4 Shares

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by dazzlingd(m): 10:50am On Apr 06, 2017
Nigeria! behold your enemy

5 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by SeniorZato(m): 10:50am On Apr 06, 2017
Shut up!!!! You don forget when naira was equal to dollar?

3 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by Iamwrath: 10:51am On Apr 06, 2017
So , because Buhari no gree to devaluate Naira , these people just dey find means abi ?

4 Likes 1 Share

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by ANBAKO: 10:51am On Apr 06, 2017
IMF - International Moda Fcukers!!!

The agent of the west to make the third world perpetually poor while they reap us and live on our resources.

Remember BRICS: Brazil was scattered with political instability, Russia with sanctions and political distraction, South Africa with political and ethnic destabilization...Scatter their credit rating! Only India and China are still surviving despite all opposition!!!

21 Likes 1 Share

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by abhosts(m): 10:51am On Apr 06, 2017
IMF are chief agents of impoverishment to 3rd world countries. Listen to them at your own peril.

8 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by juman(m): 10:52am On Apr 06, 2017
There is what I called "economic anarchy" in nigeria.

Economy without any direction.

Obviously apc is a failure.

5 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by bettercreature(m): 10:52am On Apr 06, 2017
They are trying to destroy our currency as they did to other african nations
They are destroying egypt at the moment
How can Naira be over valued when we have $30 billion dollars in Reserve and GPD of 520billion USD

5 Likes 2 Shares

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by Tazdroid(m): 10:52am On Apr 06, 2017
SeniorZato:
Shout up!!!! You don forget when naira was equal to dollar?
UP!!!!! U tok say make we "shout up" grin

7 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by smartty68(m): 10:52am On Apr 06, 2017
This is what you get in a country not well organized. Pug nose - Enemies within and out. IMF can say whatever they want cos its not their fault but that of our leaders. Just wonder what makes us giant of Africa

6 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by sapientia(m): 10:52am On Apr 06, 2017
CBN... Oya over to you...

Okonjo... Na during your time... Talk

Sanusi... you have been vocal in matters relating to economy lately... Talk..

Soludo... You and Sanusi na same.. Talk

Jonathan, na wetin happen during your time too.. Talk

Buhari... It entered 2016.. so you follow... Talk

whether IMF is right ooo or left ooo, truth is that our economy needs serious improvement.

Secondly.. if Jonathan killed us.. Buhari is burying us... Makes one start to wonder if a black man is incapable of good governance.

7 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by mrvitalis(m): 10:52am On Apr 06, 2017
Hmm
Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by DirewolfofStark(m): 10:53am On Apr 06, 2017
Currency speculators will be dancing Azonto when they hear this news.

1 Like

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by ITbomb(m): 10:53am On Apr 06, 2017
bettercreature:
They are trying to destroy our currency as they did to other african nations
They are destroying egypt at the moment
They are not destroying anything, we are already built for self-destruction

A country that is consuming foreign goods without producing anything and spending money mostly to run government is not going anywhere

7 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by mr1759: 10:53am On Apr 06, 2017
buhari don finish this country so tay ppl wey nor reach to talk to us now confronting us boldly

1 Like

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by Firefire(m): 10:54am On Apr 06, 2017
imagine?

2 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by Greyworld: 10:55am On Apr 06, 2017
How is the "overvalued" naira suppose to be their business.


IMF should learn to mind their business.

3 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by Okundaye4(m): 10:55am On Apr 06, 2017

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by datopaper(m): 10:55am On Apr 06, 2017
Y now!
Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by Nairadays: 10:56am On Apr 06, 2017
“During the past year, banking sector growth was dominated by the impact of a depreciating naira, given 45 percent of the banks’ loan book is in foreign currency,” the IMF staff report read.

“The depreciation of the naira may in some cases benefit those banks with FX assets that outweigh their FX obligations, through net valuation gain.

That is our problem right there; the Nigerian Banks. They're the hoarders, currency speculators. They'll receive from CBN but fail to sell. They're the manipulators. So the banking sector grows when the naira depreciates? shocked Wonder why Emefiele and Kemi were fighting? Emefiele was practically ordered to stop the decline of the Naira by the NEC which led the CBN using artificial means to support it's own currency, at least to alleviate the lingering suffering of it's people, but left to the IMF the Naira should be exchanging for N600 to the dollar? Abi?

May God deliver us from the white man civilization and Nigerian Banks.

7 Likes

Re: IMF Hints At Fresh Devaluation, Says Naira Is Overvalued by exlinkleads(f): 10:57am On Apr 06, 2017
why cant dey mind their own goddamn business


akwa unu ahuna

1 Like

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