Nigeria Must Float The Naira To Revive Growth – IMF

The International Monetary Fund has called on Nigeria to stop pegging its currency and to remove curbs on access to foreign exchange as economic growth is estimated to have eased to its slowest pace in 16 years amid low oil prices. The economy of Africa’s largest oil producer expanded 2.8 percent last year, compared with 6.3 percent in 2014In a bid to conserve dwindling reserves and boost local manufacturing, Nigeria’s central bank last year imposed restrictions on access to foreign currency. The moves have suffocated businesses dependent on imports and encouraged capital flight from foreign portfolio investors. Governor Godwin Emefiele, with President Muhammadu Buhari’s backing, has pegged the naira for almost a year at 197-199 per dollar. Read more on Nigeria’s monetary policies here.