Saturday, January 29, 2022

IMF Counsels  Nigeria, others On Financial Policy

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The International Monetary Fund,IMF, has urged emerging economies such as Nigeria to allow their currencies to depreciate in response to tighter funding conditions and an imminent policy tightening by the Federal Reserve Bank of the United States.

The Washington-based lender also counselled the Central Bank of Nigeria,CBN and others to raise their benchmark interest rate in preparation for the Federal policy tightening in a blogpost titled, ‘Emerging Economies Must Prepare for Fed Policy Tightening,.

It further said while changes in the global economic outlook appear positive, especially in the United States, such changed are uncertain for emerging markets.

It added that some emerging markets have started to adjust monetary policy and are preparing to scale back fiscal support to address rising debt and inflation.