There is confusion in town over the exchange rate of the
dollar to the Nigerian currency as Bureau De Change
(BDC) operators are saying that it is now N305/dollar.
We gathered from a reliable source in the foreign
exchange market that the Nigerian currency, up from its
steady rise within 48hours, has risen steadily against the
dollar in the wake of President Muhammadu Buhari’s
insistence that he does not support the devaluation of the
currency.
Speculators had been shocked by the consecutive rise on
Tuesday, February 23, as they had predicted an all-time
rise from the initial N400 (an all time low) to about
450/500 in the coming days.
There are further speculations that the amount, up from an
initial N364 from Tuesday, is now at N305, while there are
also unconfirmed reports that it may slip further before the
end of the day.
Meanwhile, the International Monetary Fund (IMF) has
persuaded President Buhari to adopt a sound petroleum
industry bill (PIB) as well as expunge restrictions around
foreign exchange policy.
While the PIB had been in the works since 2007, it has
been dogged by political controversies as well as
opposition to the fiscal terms by international oil
companies.
The present administration has adopted a fixed forex
policy that also does not include the allowance of 41
imported items, and this has been criticised from different
quarters.
According to The Cable, a statement detailing IMF
observations about the Nigerian economy after its visit in
January, its senior resident representative to Nigeria, Gene
Leon, said: “growth is projected to improve slightly to 3.2
per cent in 2016 but could rebound to 4.9 per cent in
2017.
“In the light of the significant macroeconomic adjustment
that is needed to address the permanent terms-of-trade
shock, it will be important for Nigeria to put in place an
integrated package of policies centred around: fiscal
discipline; reducing external imbalances; further improving
efficiency of the banking sector; and fostering strong
implementation of structural reforms that will enhance.
“The general government deficit is projected to widen
somewhat before improving in 2017, while the external
current account deficit is likely to remain flat at 2.3
percent of GDP. Growth in credit to the private sector is
projected to recover from the slump in 2015, aiding the
increase in activity.
“Key risks to the outlook include lower-than-budgeted oil
prices, shortfalls in non-oil revenues, a further
deterioration in finances of state and local governments,
and a resurgence in security concerns.”