The International Monetary Fund (IMF) has stated that the recent depreciation of the Naira is not inherently negative. During a press briefing at the World Bank and IMF Annual Meetings in Washington DC, Mr. Tobias Adrian, the Financial Counsellor and Director of Monetary and Capital Markets, explained that exchange rates serve as important buffers for adjusting the domestic economy in response to various shocks.
He noted that a depreciating exchange rate could help restore economic equilibrium. The IMF has observed positive developments in Nigeria, including strengthened monetary policy and improved revenue collection, which have contributed to a decrease in inflation from over 30% to 23%.
Adrian emphasized the need for Nigeria to continue enhancing its fiscal and monetary policies, as well as structural reforms like revenue mobilization, to address vulnerabilities in the economy.
In related discussions, he expressed satisfaction with the global regulations surrounding stable coins and highlighted the need for ongoing improvements in financial transparency and policy frameworks.
