IMF Tells CBN Commercial Banks Is Key to Saving Naira From Further Depreciation Against Us Dollars

• The Central Bank of Nigeria has been advised to examine its foreign exchange management method, which is damaging the Naira
• The IMF issued the advice while guaranteeing that a change may be all the Naira needed to avoid further decline against the US dollar.
• The Naira has been under tremendous pressure due to the CBN's decision to issue new Naira notes and forex scarcity

The International Monetary Fund (IMF) has advised Nigeria's Central Bank (CBN) on currency rate management and resolving Naira's devaluation.

According to the fund, the CBN should allow commercial banks to determine dollar buy-sale rates in order for the Naira to regain its value and resolve the present FX crisis.

The Nation reports that the IMF stressed that granting commercial banks the ability to determine the exchange rate will increase foreign capital flows into the economy.

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The IMF gave the advice in its 2022 Article IV Consultation concluding statement published on Friday.

IMF said:

“Maintaining an uniform and market-clearing currency rate is vital to increasing foreign investor confidence in the economy."

IMF also insisted that continued forex shortages, a stabilised exchange rate regime, rising inflation, limited debt servicing capacity, and administrative restrictions on current transactions fuel devaluation speculations.

According to IMF:

“These factors hinder much-needed capital inflows, encourage outflows and constrain private sector investment. The mission reiterated its past recommendations to move towards a unified and market-clearing exchange rate by dismantling the various exchange rate windows at the CBN accompanied by clarity on exchange rate policy and supportive fiscal and monetary policies.

“In the medium term, the CBN should step back from its role as main forex intermediator, limiting interventions to smoothing market volatility and allowing banks to freely determine forex buy-sell rates."

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Banks update requirements to get forex as official and black market rate exchange rate difference hit N335

Nigerian banks announce new working days, closing time

Meanwhile, Nigerian banks have announced changes to their operating hours in order to assist Nigerians holding soon-to-expire Naira currencies

The banks have already announced that they have delivered notifications of their working hours via their social media channels and customers' emails

Details of the contents of their emails and changes were captured by Legit.ng in this report.

Source: Legit.ng