Published On: Fri, Apr 8th, 2016

CBN maintains stance against Naira devaluation

Central Bank of Nigeria, CBN

Central Bank of Nigeria, CBN

From OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – ANALYSTS have forecast the Central Bank of Nigeria to defy recommendations by the International Monetary Fund (IMF) to devalue the Naira.

The IMF’s executive board has concluded the Article IV consultations for 2016 with the Government with the issue of the Naira again in the spotlight.

The Bretton Woods institute called for an exchange rate that is both more flexible and more consistent with macroeconomic fundamentals.

“The call is likely to fall on deaf ears since the monetary policy committee’s latest communiqué on 22 March noted approvingly the rate’s stability,” First Bank Nigeria (FBN) stated on Friday.

FBN noted The board’s discussions are generally based on a staff report, which is published once the member government gives its go-ahead and which tends to give a few revealing insights.

“We can see from the press release that the Fund and the FGN have agreed to disagree on exchange-rate policy, and so continued the trend of the Soludo and Sanusi governorships.”

Charles Soludo and Lamido Sanusi are former governors of the central bank.

CBN has resisted calls to devalue the Naira as it rapidly loses value against major currencies.

Nigeria President Muhammadu Buhari has backed the bank on the position arguing devaluing could worsen the woes of Nigerians, already searing under economic burdens.

– CAJ News

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