IMF urges CBN to end forex intervention

THE International Monetary Fund (IMF) on Monday lauded the Federal Government on its economic reform policies, especially on the Finance Act and the Deep Offshore Basin Act.

The commendation is contained in the IMF Article IV Consultation to Nigeria, released on Monday.

According to the Fund, the Federal Government had recognized the vulnerabilities facing the economy and taken the steps to boost revenue and improve budget implementation by signing the 2020 Budget before the end of last year.

It advised the Central Bank of Nigeria (CBN) to stop defending the naira through dollar interventions and adopt a unified exchange rate regime.

The preliminary findings on the economy, according to the Fund, showed that growth is still recovering, inflation is increasing, and external vulnerabilities rising.

The fund said fiscal reform momentum and recent tightening of monetary policy are welcome, adding that major policy adjustments remain necessary to contain short-term vulnerabilities and unlock Nigeria’s growth potential.

The IMF staff team, led by Amine Mati, Senior Resident Representative and Mission Chief for Nigeria, visited Lagos and Abuja from January 29-February 12, 2020, to conduct its annual Article IV Consultation discussions on Nigeria’s economy.

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