The International Monetary Fund, IMF, says the naira remains undervalued by 25.6 percent despite gains recorded following Nigeria’s foreign exchange reforms.
In its Article IV consultation report on Nigeria, the Washington-based lender said its Real Effective Exchange Rate model shows the currency is still trading below levels justified by economic fundamentals. It estimated the naira’s fair value at about N1,142 to the US dollar at the end of 2025.
The IMF noted that the official exchange rate strengthened from N1,535 per dollar at the end of 2024 to N1,435 at the end of 2025, but said the currency still weakened on an annual average basis. It added that the naira’s nominal rate stood at about N1,356 to the dollar as of Monday.
The Fund urged the Central Bank of Nigeria to allow greater exchange rate flexibility and to slow the pace of foreign reserve accumulation, saying further reforms in fiscal management and the non-oil sector would help close the gap.
Also Read: Federal Government Commences Mass Trials for Hundreds of Suspected Terrorists in Abuja
Leave feedback about this
You must be logged in to post a comment.