The Nigerian Naira takes a new-surprising turn

By Obalakun Ayomide

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The free fall of Naira is now becoming a thing of history, as the currency has continued to rise up for the past 3 days, consecutively and is now at the rate of about 250 Naira/ 1 USD.

This rise has been a shock to speculators who have predicted an all-time rise from the initial 400 Naira / 1 USD to about 450/500 in the nearest further.

The Naira, which had its value at around 360-400 per USD has defied expectations and has had a steady rise within 48 hours, gaining strength against the dollar in wake of PMB’s Insistence that he doesn’t support the devaluation of the Naira.

The imf has however persuaded PMB to adopt a sound petroleum industry bill (PIB)  as well as removal restrictions around Foreign exchange policy.

Although the PIB has been since 2007, it has been trailed by political controversy and oppositions by international oil campanies.

In a statement by the  Senior resident representative of IMF to Nigeria, Gene Leon on observation about The Nigerian Economy, after a visit in January, Leon revealed that
Economic growth is projected to Improve slightly to 3.2% in 2016 but could rebound to 4.9% in 2017. He the advised that it will be important for Nigeria to put in place policies that can help foster strong and efficient economy and reduce external imbalancing by puting some fiscal policies in place.

He explains that the general government deficit is projected to widen before improving in 2017, while the external current account deficit is likely to remain flat at 2.3% of GDP.
He also said that Growth in credit to the private sector is projected to reHouse from the slump in 2015,  aiding the increase in activity.

©2016.
CoNnect Media House

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