IMF Speaks on Its Alleged Prediction of Exchange Rate of Naira to Dollar in 2024

• The International Monetary Fund has debunked a widespread report which said it projected an exchange rate for Nigeria
• The organisation stated that it does not predict the exchange rate for any country, but the reports were based on its 2023 economic outlook
• The IMF stated that the report offers a cautionary outlook, which projected an apparent economic downturn and critical policy adjustments

Legit.ng’s Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade

The International Monetary Fund (IMF) Resident Representative for Nigeria, Christian Abeke, said the organisation does not publish exchange rate forecasts.

Abeke responded to widespread reports in the Nigerian media, quoting the IMF as forecasting the naira to dollar exchange rate for 2024.

IMF says the report dates back to 2023

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He highlighted that the source of the report goes back to a report by the organisation in 2023, which it recently published.

According to reports, the 2024 report presented a hypothetical downside scenario of the analysis.

According to reports, the exercise aims to provide a stress test for vital macroeconomic variables against potential external shocks.

IMF said:

“Recent articles in the Nigerian press that quote a specific naira/US dollar exchange rate projection by the IMF are incorrect. The IMF does not publish exchange rate forecasts.

IMF warns of escalating inflation in 2024

The IMF report offers a cautionary outlook, which projected an apparent economic downturn and critical policy adjustments.

The report cautions about the rising inflation, which could hit 44% if the Central Bank of Nigeria (CBN) fails to enforce robust monetary tightening measures.

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The prediction is based on a scenario where the naira faces significant pressure.

The report outlines how multiple factors could disrupt the country's economic stability, including monetary policy response, continued strain on the naira, and adverse climate events.

IMF gives African countries conditions for debt relief

Legit.ng reported that The International Monetary Fund (IMF) has dismissed the idea of total debt cancellation for Nigeria, Ghana, and other African countries.

The IMF African Department Director, Abebe Selassie, said about 50% of total debts in African countries are domestic, making debt cancellations difficult.

According to the Debt Management Office (DMO), Nigeria's total debt stock stands at N87 trillion as of June 30, 2023.

Source: Legit.ng