A devaluation of the Naira by as much as 25% is imminent according to a research note from brokerage firm Exotix. This change is expected at the next Monetary Policy Committee meeting to be held by the Central Bank.
The head of the International Monetary Fund, Christine Lagarde, during a meeting, Tuesday, with President Muhammad Buhari and his top economic advisers, had urged Nigeria to adopt a more flexible monetary policy instead of the current rigid policy regime currently in place.
“Clearly the authorities should not deplete the reserves of the country simply because of rules that would be exceedingly rigid,” Lagarde told reporters at the presidential villa in the capital Abuja.
The IMF head hailed Buhari’s anti-corruption drive saying that the effects would bring positive impact across West Africa.
“His determination to bring about transparency and accountability at all levels of the economy were very important agenda items,” she said.
Lagarde added that a team of IMF experts would visit Nigeria next week in order to evaluate the country’s borrowing costs as outlined in the 2016 budget.
“The short-term fiscal situation … requires that revenue sources be identified in order to compensate the shortfall resulting from the oil price decline,” the IMF head stated.
Many Nigerians across the social media, however trolled the discussions the IMF head had with the President, and advised the President not listen to whatever economic advise she had to offer.
Afrobeat musician, Seun Kuti, son of the late Fela Anikulapo Kuti had this to say:
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