The International Monetary Fund (IMF) has blamed the double digit inflation rate in Nigeria on the challenges around foreign exchange (forex), adding that efforts of the Central Bank of Nigeria (CBN) to defend the naira by forex rationing crumbled like soap bubbles.
About a year ago, Managing Director, Christine Lagarde, met with the major players in the Nigerian economy, including President Muhammadu Buhari, Finance Minister, Mrs. Kemi Adeosun, and CBN Governor, Godwin Emefiele.
The IMF chief canvassed the removal of fuel subsidy and naira devaluation both of which have been done. In its policy paper on macroeconomic developments and prospects in low-income developing countries (LIDCs), unveiled at the weekend, IMF said the failures in the economy were due to “delayed/poorly managed policy adjustment”.
“There were sharp movements in currencies across many LIDCs during 2015. Further sizeable depreciations were recorded in 2016 in commodity exporters under stress,” the paper read.