A devaluation is the downward adjustment of the value of a country’s money relative to another official exchange rate. It reduces the cost of a country’s export. Simply put, a currency devaluation makes imported products move expensive and stimulates inflation.
Not too many people know that for the ninety year in a row, the IMF has advised Nigeria to devalue the naira. The international money lender is asking the CBN to devalue an already cast rates naira and raise and interest lending rates. This action poses very difficult choices for us.
At the moment, a subsidy removal on petroleum products and electricity tariffs are on the cards even as organized Labour is spoiling for a nationwide strike. The IMF is breathing down on us and as heavily indebted country, we might return to the SAP days. Are we ready?
