ADVERTISEMENT
The Sun Nigeria
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
The Sun Nigeria
No Result
View All Result
Home Business

IMF advises CBN to unify exchange rates

8th February 2021
in Business
0
IMF advises CBN to unify exchange rates
0
SHARES
167
VIEWS
Share on FacebookShare on Twitter

 

 

From Uche Usim, Abuja

The International Monetary Fund (IMF) has advised the Central Bank of Nigeria (CBN) to take a gradual and multi-step approach towards establishing a unified and clear exchange rate regime with the near-term focus on allowing for greater flexibility and removing the payments backlog.

The advice is contained in the IMF Executive Board 2020 Article IV Consultation with Nigeria.

The bank’s directors observed that multiple rates, limited flexibility, and foreign exchange shortages are posing challenges.

They further noted that the accommodative monetary stance remains appropriate in the near term, although tightening may be warranted if balance of payments or inflationary pressures were to increase.

They highlighted the need for improved social safety nets to cushion potential negative impacts on the poor.

The IMF also stated that Nigeria’s economy has been hit hard by the COVID-19 pandemic.

“Following a sharp drop in oil prices and capital outflows, real GDP is estimated to have contracted by 3.2 percent in 2020 amidst the pandemic-related lockdown.

“Headline inflation rose to 14.9 percent in November 2020, a 33-month high, reflecting core and food inflation increases emanating from supply shortages due to the lockdown effected to curb infections alongside, the land-border closure and continued import restrictions.

“The unemployment rate reached 27 percent in the second quarter of 2020, with youth unemployment at 41 percent.

“The Nigerian authorities acted swiftly to adopt a pandemic-related support package equivalent to 0.3 percent of GDP in the 2020 revised federal budget despite limited fiscal space.

External vulnerabilities due to lower oil prices and weak global demand have increased, with the current account remaining in deficit in the first half of 2021.

“In April 2020, Nigeria received IMF emergency financial assistance of $3.5 billion under the Rapid Financing Instrument to help cushion the impact of the pandemic.

“Socio-economic conditions have deteriorated, with rising food inflation, elevated youth unemployment, mass protests in October 2020, and surveys show worsening food insecurity with a significant impact on the vulnerable”, it stated.

The IMF added that risks are tilted to the downside and include the resurgence of the pandemic, security situation and unfavorable external environment.

“Capital outflow risks arise from the record-low domestic interest rates and large foreign holdings of domestic securities.

“On the upside, recovering oil prices and completion of the Dangote oil refinery could catalyze more domestic crude oil production and boost growth”.

They commended the authorities for the measures taken to address the health and economic impacts of the COVID-19 pandemic which have exacerbated pre-existing weaknesses.

Looking ahead, Directors emphasized the need for urgent policy adjustment and more fundamental reforms to sustain macroeconomic stability and lift growth and employment.

Directors welcomed notable reforms undertaken in the fiscal sector, including removal of the fuel subsidy and steps to implement cost-reflective tariff increases in the power sector.

However, they stressed the need for significant revenue mobilization to reduce fiscal sustainability risks, relying initially on progressive and efficiency-enhancing measures with higher tax rates awaiting a more sustained economic recovery.

Philip Nwosu

Philip Nwosu

Related Posts

Rescind ban on new SIM registration, ASAN begs FG
Business

Rescind ban on new SIM registration, ASAN begs FG

25th February 2021
COVID-19: FG to present supplementary budget for vaccination
Business

COVID-19: FG to present supplementary budget for vaccination

25th February 2021
Alliance for renewable energy launches in Abuja
Business

Alliance for renewable energy launches in Abuja

25th February 2021
Next Post
Buhari presides over 26th virtual FEC

Buhari sends delegation to Tony Momoh family, says Nigeria has lost a rare gem

#EndSARS: Mother of 11yr-old boy hit by stray bullet demands N50m compensation

#EndSARS: Mother of 11yr-old boy hit by stray bullet demands N50m compensation

Incessant strike: NANS blast ASUU, NASU, warns against further strike

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Highlights

Use your youthful energy to implement reforms, ensure fair and balanced fight against corruption, CISLAC tells EFCC boss

Illicit financial flow: Buhari welcomes launch of FACTI Panel Report

Rape, kidnapping attract death sentence in Jigawa

Declare total, unsparing fight against corruption, APC charges new EFCC boss

Attempt to assasinate IPOB lawyer foiled

COVID-19: FG to present supplementary budget for vaccination

Trending

Politics

INEC fixes Aba North/South bye-election March 27

25th February 2021
0

From Romanus Ugwu, Abuja The Independent National Electoral Commission (INEC), has fixed March 27, 2021 for the...

sultan

Sultan to Northern governors: You must be in a hurry to arrest insecurity

25th February 2021
Drug war: Marwa reads riot act to NDLEA Commanders

NDLEA: Marwa asks Nigerians to take ownership of fight against drug abuse

25th February 2021
Use your youthful energy to implement reforms, ensure fair and balanced fight against corruption, CISLAC tells EFCC boss

Use your youthful energy to implement reforms, ensure fair and balanced fight against corruption, CISLAC tells EFCC boss

25th February 2021
Buhari assures Konare of Nigeria’s expected key role in subregion, continent

Illicit financial flow: Buhari welcomes launch of FACTI Panel Report

25th February 2021

Follow us on social media:

Categories

  • Abuja Metro
  • Arts
  • Broken Tongues
  • Business
  • Business Week
  • Cartoons
  • Citizen Joe
  • Columns
  • Cover
  • Culture
  • Duro Onabule
  • Editorial
  • Education Review
  • Effect
  • Elections
  • Entertainment
  • Events
  • Features
  • Femi Adesina
  • Food & Drinks
  • Frank Talk
  • Funke Egbemode
  • Gallery
  • Global Square by Kenneth Okonkwo
  • Health
  • Insights
  • Kalu Leadership Series
  • Kunle Solaja
  • Kunle Solaja
  • Letters
  • Lifeline
  • Lifestyle
  • Literary Review
  • Marketing Matters
  • Muiz Banire
  • National
  • News
  • Offside Musings
  • Opinion
  • oriental news
  • Politics
  • Press Release
  • PressClips
  • Public Sphere
  • Ralph Egbu
  • Shola Oshunkeye
  • Sideview
  • South-west Magazine
  • Sponsored Post
  • Sporting Sun
  • Sports
  • Sun Girl
  • Tea Time
  • The Flipside – Eric Osagie
  • The Sun Awards Live
  • The Sun TV
  • Thoughts & Talks
  • Time Out
  • Today's cover
  • Tola Adeniyi
  • Travel
  • Travel & Tourism
  • Trending
  • TSWeekend
  • Turf Game
  • Uncategorized
  • Updates
  • Views from Abroad
  • Voices
  • World
  • World News
  • Home
  • About Us
  • Paper Ad Rate
  • Online Ad Rate
  • The Team
  • Contact Us
  • Privacy Policy

© 2019 The Sun Nigeria - Managed by Netsera.

No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun

© 2019 The Sun Nigeria - Managed by Netsera.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist