The IMF said Naira depreciation could benefit Nigeria’s economy, citing improved monetary policies and reduced inflation.
The International Monetary Fund (IMF) has said that the depreciation of the Naira is “not necessarily a bad thing” for Nigeria’s economy. Speaking during the Global Fiscal Sustainability Report press briefing at the IMF-World Bank Annual Meetings in Washington DC, Mr. Tobias Adrian, IMF’s Financial Counsellor and Director of Monetary and Capital Markets, explained that exchange rate adjustments can help economies respond to shocks. “A depreciating exchange rate is not necessarily a bad thing.
It may actually be a good thing to restore equilibrium,” he said. Adrian noted improvements in Nigeria’s monetary framework, revenue collection, and transparency in foreign reserves, which have helped reduce inflation from over 30% last year to 23%. He urged continued reforms in fiscal and structural policies. Adrian also welcomed global efforts to regulate stable coins, noting that several countries, including the US, EU, and Japan, had already established legal frameworks.