IMF Backs CBN’s Policy Shift, Cardoso Says FX Crisis Forced Nigeria to Diversify Inflows
• Explains shift in monetary strategy • Lists independent MPC decisions, transparency, consistent communication as drivers of market confidence • Fitch revises outlook on 9 Nigerian banks to positive on
The International Monetary Fund (IMF) has endorsed the Central Bank of Nigeria's (CBN) recent monetary policy realignment, citing significant progress in reducing inflation and the need to diversify foreign exchange (FX) inflows. This shift in policy comes after the CBN Governor, Olayemi Cardoso, disclosed that Nigeria's FX crisis forced the country to seek alternative sources of FX inflows, particularly as net foreign reserves fell to about $3 billion and outstanding forex backlogs exceeded $7 billion.
The IMF's endorsement underscores the appropriateness of the CBN's decision to lower the Monetary Policy Rate (MPR) by 350 basis points at the September 2026 meeting, despite the move being perceived as surprising by market analysts. Fitch Ratings has also revised the outlooks of nine Nigerian banks and two bank holding companies to Positive from Stable, affirming their Long-Term Issuer Default Ratings (IDRs) at 'B'.
Brief written by urgent.news from This Day's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
