CBN Receive Commendation From IMF for Naira Growth
In the light of the rising value of the Naira, the International Monetary Fund (IMF), has given the Central Bank of Nigeria (CBN), a commendation for its recent activities in foreign exchange policy which has seen the rise of the naira to its best point in almost a year.
This is coming after the apex bank begun its phase by phase injection of over $1.5 billion in the interbank market.
As against the predictions by some financial analysts who expected the Naira to drop to about 1000 to the dollar, the naira has continued to gain.
The tactic used by the apex bank although discredited by some financial watchers now seems to be a valid one as the IMF has applauded it.
This was evidenced by the message by the IMF contained in a statement which acted as a sort of encouragement to the Nigerian financial market and also gave pointers on how to sustain the growth of the Naira.
They hailed the CBN for easing of some exchange restrictions and urged the authorities to remove the remaining restrictions and multiple currency practices as well as emphasizing that these policies should be supported by tighter monetary policy and fiscal consolidation.
They also asked that there should be structural reforms which would enable the economy to be less dependent on oil thereby ensuring that small and medium scale businesses thrive in the economy amongst other recommendations.