The International Monetary Fund, IMF, on Tuesday praised the Central Bank of Nigeria, CBN, for its policies that have helped the Naira show signs of stability.
This was contained in IMF global financial stability report launched during a press briefing at the ongoing World Bank/IMF meetings holding in Washington DC.
The world financial body stated that the Naira’s stability comes against the backdrop of the clearing of the foreign exchange backlog by the Central Bank of Nigeria (CBN) and interest rate hikes.
Recall that the CBN has, in recent months, hiked rates as part of measures to contain inflation and stabilize the economy.
The apex bank also equally cleared backlogs of foreign exchange payments to airlines, amid other obligations.
The IMF said frontier sovereign spreads have followed global trends and tightened further in the second quarter, having approached long-term average levels.
Significant progress on debt restructuring has also helped lift investor sentiment toward frontier markets, it said.
“For example, the Eurobond restructurings in Suriname, Zambia and Ghana were completed in December, June, and October, respectively. While an agreement in principle was reached with creditors in Sri Lanka in September.
source: Premium Times
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