The International Monetary Fund on Wednesday said Nigeria’s economy shrinks to its deepest level of 1.8 per cent since 1983 and throwing over 131 people into poverty, with the outbreak of COVID-19 pandemic and low oil prices.
The IMF, however, announced policy options that can help reduce inflation and protect poor households livelihood, which includes, increasing the transparency and predictability of exchange rate management policies to reduce distortions in allocations to the private and public sector stakeholders.
Others are to ensure that agents can access foreign exchange in a timely and orderly manner at an agreed rate, Nigeria should clearly define monetary-policy priorities and objectives, with price stability as the primary goal.
“Resumption of naira-denominated open-market operations based on a transparent issuance schedule, and signal to markets that OMOs will use short-maturity securities to achieve price stability.
“Full and effective reopening of land borders for trade and strengthening regional co-operation to combat smuggling.
“Facilitation of imports for staple foods and medicines by removing them from the list of foreign exchange (FX) restrictions and replacing import bans and with tariffs that align with the ECOWAS Common External Tariff”, it stated.