Following the bleak post-COVID-19 predictions by the International Monetary Fund, IMF, for Nigeria, calls to further devalue the Naira by the IMF have fallen on deaf ears.
The IMF had proposed that the Naira which is 18% overvalued should be devalued to ease external imbalances, however, the current administration has countered the argument saying that another deflation would result in further inflation and is not feasible at this critical time of the economy.
Several Nigerians have felt the adverse economic impact of the pandemic from not being able to carry out usual business activities to the steady fall in the value of the Naira due to the dropping oil revenue, which for far too long had remained the mainstay for the Nigerian Economy to rising costs of food and electricity.
The CBN had adjusted the exchange rate after the initial crash in oil prices, this current administration had also twice injected forex to stabilize the economy which served as a temporary buffer for the economic woes.
The IMF has, however, advised the Federal Government to unify the exchange rate within the country which it believes has hurt the nation’s policy credibility.