IMF advices African countries including Nigeria to adjust exchange rate
The International Monetary Fund has advised Sub-Saharan African countries to seek currency adjustments (devaluation) due to the realities of rising global interest rates and limited access to funding. The fund opines that “some adjustment of currencies seems unavoidable in many cases” even if their reaction was to resist it. “There are certainly some reasons for sub-Saharan African countries to resist exchange rate pressures, including an elevated share of foreign-currency debt and weakly anchored inflation. But countries have to adjust to new fundamentals of higher global interest rates and tighter financing conditions that are expected to last into the foreseeable future. For most countries, the…
