The International Monetary Fund (IMF) has cautioned that Nigeria’s exchange rate might experience an additional 35 per cent depreciation this year.

What the IMF said:

“Monetary policy is tightened insufficiently to bring down inflation below 20% and pressures on the naira persist. In addition, Nigeria is hit by another adverse climate shock in early 2024 (following severe flooding in late 2022) that exacerbates the current weakness in agriculture and leads to a decline in output and a surge in food prices,”

“Given the absence of local production and the recent liberalization of commodity imports, the exchange rate would likely depreciate further—by an estimated 35% in 2024—and contribute to a further sharp rise in inflation, peaking at 44%, before monetary policy is eventually tightened sharply.”

The Bretton Woods institution suggests that the country would gain from formulating a comprehensive macroeconomic and growth strategy, in collaboration and with support from development partners.

Even with these challenges, the IMF is optimistic that Nigeria will fulfil its repayment obligations to the Fund, provided there is a continued focus on servicing external debt.

“Nigeria would be able to repay the fund, even in the downside scenario. This assumes that the authorities continue to prioritise external debt service. However, debt service would compete directly with urgent humanitarian needs to tackle rising poverty and food insecurity which would need to be prioritised,” it said.

Read on...
https://latestnewsng.com/2024/02/nigeria-faces-35-naira-depreciation-risk-and-44-inflation-peak-imf/

Aptly said

Westerhoffe:
Wetin concern us?
If Nigeria like make dem devalue Naira to ₦6,000.00k per $1, na like this we go still dey look una.

Hunger

Meanwhile, the white powder govt is experimenting with Trial and Error bulabu economics.

Nigeria should distance herself from IMF. IMF don't mean well for Nigeria and Nigerians.