SHOCKING! Is One Nigerian Bank Broke?
The International Monetary Fund, IMF has prepared a very scathing report on Nigeria’s economy, especially the banking sector.
Second, the Fund called out some commercial banks, saying they are struggling and that one has already gone broke.
The report, which was exclusively seen by Reuters, however did not name the bank.
But IMF said, “some of these banks are kept afloat through continuous recourse to the CBN’s lending facilities”.
Because the report was seen ahead of official release, the IMF said it does not comment on purported leaks.
A spokeswoman for the Fund told Reuters that a statement would be issued after the lender’s board meets to discuss its assessment on Friday.
Nigerian finance ministry spokeswoman did not also immediately respond to a phone call and email requesting comment.
Meanwhile, the fund has again expressed its disapproval of the CBN’s regular interventions in the foreign exchange market.
“Moving towards a unified exchange rate should be pursued as soon as possible.
“(IMF) staff does not support the exchange rate measures that have given rise to the exchange restrictions and multiple currency practices,” the IMF said.
The Fund further singled out the CBN, saying it should discontinue direct interventions in the economy.
The Central Bank of Nigeria (CBN) frequently injects hundreds of millions of dollars into the foreign exchange market to keep the naira stable.
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