Nigeria rejects IMF recommendations on currency devaluation
Nigeria rejects IMF recommendations on currency devaluation

Nigeria rejects the recommendations of the International Monetary Fund

The International Monetary Fund announced that the Nigerian government rejected its recommendation on devaluing the country's domestic currency in order to ease external imbalances.

The International Fund stated, in a statement published on Monday, that the administration of Nigerian President “Muhammad Bukhari” believes that the currency is under pressure stemming from global outflows resulting from the Corona virus pandemic, considering that another decline in the currency's price will cause an acceleration of inflation.

The IMF believes that the Nigerian currency, the "naira", is valued at 18% more than its real value, which harms the credibility of the authorities and leads to the emergence of a parallel exchange market.

The fund called on the authorities in Nigeria to unify different exchange rates and remove restrictions imposed on obtaining hard currency for some imports.

Last December, Nigeria's CPI inflation hit a three-year high of 15.8%.