The IMF acknowledged that the recent exchange reforms and other measures taken by the Nigerian authorities have been in line with their recommendations.
Additionally, they expressed support during the World Bank Group/International Monetary Fund Meeting in Marrakech, for the recent decision by the Central Bank of Nigeria, led by Olayemi Cardoso, to lift the eight-year foreign exchange ban on items such as cement, rice, poultry products, and 40 other commodities which were banned by the previous administration of the Central Bank of Nigeria in 2015.
The IMF also pointed out that inflation in Nigeria remained high, at 26 percent as of August, and the naira continued to face pressure. The local currency had depreciated from around 450 naira per dollar to an average of 760 naira per dollar following President Bola Tinubu's exchange reforms. It has continued to decline in the parallel market.
In addition to emphasizing the need to tighten monetary policy by increasing the Monetary Policy Rate and reducing excess naira liquidity, the IMF stated that foreign exchange market confidence could benefit from greater transparency regarding the Central Bank of Nigeria's dollar obligations.
According to a JP Morgan report, the Central Bank of Nigeria's forward contract obligations amount to $6.8 billion, but some stakeholders suggested that the actual amount could be higher.
