BE READY: CBN’s Forex Interventions Will Haunt Nigeria In The Future - IMF
You see, after crude oil prices took a hit in the global oil market, Nigeria’s currency, the Naira, took a major blow that saw it reduced to almost nothing.
The Central Bank of Nigeria, CBN had to step in to save the currency from total collapse.
Since then, the Naira has been making a serious recovery against the American dollar as the CBN continues to intervene in the market to ensure enough and consistent supply of the green back.
But the International Monetary Fund, IMF believes Nigeria has only put off the evil day.
The idea of CBN intervention will not last, and it will certainly come to haunt the country in the future.Also Read: Why CBN Alone Can’t Tackle Nigeria’s Economic Woes – Emefiele
This point was a highlight of the World Economic Outlook’s focus on Nigeria which was released on Tuesday in Washington.
The Economic Counsellor and Director of Research, IMF, Maurice Obstfeld, stated these at a press briefing at the Fund’s headquarters shortly after the release of the report.
“Nigeria is expected to emerge from the 2016 recession caused by low oil prices and the disruption of oil production. Growth in 2017 is projected at 0.8%, owing to recovering oil production and ongoing strength in the agricultural sector.
“However, concerns about policy implementation, market segmentation in a foreign exchange market that remains dependent on central bank interventions (despite initial steps to liberalise the foreign exchange market), and banking system fragilities are expected to weigh on activity in the medium term,” Obstfield stated.
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