The International Monetary Fund (IMF) has advised the apex bank in Nigeria, Central Bank of Nigeria to stop direct injection of funds into the economy.
The IMF made the recommendation on the heels of paving the pathway for a rebound in the Nigeria’s economy, which fell into recession after the 2015 general elections.
In it’s annual review of Nigeria’s economy, the IMF noted advised CBN, which frequently injects hundreds of millions of Dollars into the foreign exchange market to keep its own rates stable, to desist from direct interventions in the economy.
The IMF also said some of the commercial banks are kept afloat through continuous recourse to the CBN’s lending facilities as they struggle to remain solvent.
In the same vein, the IMF called on Nigeria to simplify its seemingly complex foreign exchange.
The group said: “Moving towards a unified exchange rate should be pursued as soon as possible. IMF staff does not support the exchange measures that have given rise to the exchange restrictions and multiple currency practices.” the IMF said.