Post by TheCable (@thecableng)

IMF estimates naira's fair value at N1,142/$, says currency 25.6% undervalued

The International Monetary Fund (IMF) says the naira remains undervalued by 25.6 percent despite recovering some ground against the US dollar following Nigeria’s foreign exchange (FX) reforms.

An undervalued currency means the exchange rate is weaker than what economic fundamentals would ordinarily support.

In its latest Article IV consultation report on Nigeria, the Washington-based institution said its Real Effective Exchange Rate (REER) model showed the local currency was still trading below levels justified by the country’s economic fundamentals.

https://www.thecable.ng/imf-says-naira-is-25-undervalued-despite-fx-reforms/

IMF estimates naira's fair value at N1,142/$, says currency 25.6% undervalued The International Mo...

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