LAGOS—The IMF is pressing Nigeria to
further devalue its currency amid uncertainty over the political and economic
outlook for Africa’s biggest oil producer and economy a news agency has
reported. The report quoted Antoinette Sayeh, the International Monetary Fund’s
Africa Director who had alleged that restrictions placed on 41 items access to
foreign exchange was “quite detrimental saying that in Nigerians they “are
already making it harder for the average person to buy milk,” at the IMF annual
meeting that ended in Peru two weeks ago.
But Mrs Antoinette Sayeh openly
avoided Nigeria reporters who asked her to name one country in the world that
export crude and import refined products. She was also not forth coming when
asked to name one country that would import anything that could be produced
locally. Her assertion that it was becoming difficult for Nigerians to buy milk
in the open market did not go down well with those who are familiar with the
Nigerian situation at the Africa region press briefing.
She
called for a review of the restrictions and for officials to “permit the
exchange rate to continue to adjust.”
Nigeria’s
Central Bank devalued the naira by 8 per cent in November and then fixed the
official exchange rate at N198 to the dollar, though it sells at N222 at
exchange bureaus. The Central Bank has defended the naira by restricting access
to foreign currency for 41 items that could be produced locally.
The
International Monetary Fund IMF at the same annual meeting said that
Exchange-rate devaluation which countries normally use during financial crisis
could cause adverse effect on countries economy. In its World Economic Outlook
released in Lima, Peru, it said: “Exchange-rate depreciation has generally been
a useful buffer for countries experiencing growth slowdowns – and has already
been substantial – but could cause adverse balance-sheet effects where there is
foreign-currency borrowing”.
In his
opening remark at the World Economic Outlook Press Conference Mr. Maurice
Obstfeld IMF chief economist said “No single set of policy prescriptions is
suitable for every country seeking to improve growth performance or build
resilience.”
