Nigeria is set to receive an IMF facility of $3.85 billion an amount which is part of a general allocation of Special Drawing Rights (SDRs) of the international multilateral Institution. In 2020, Nigeria was a beneficiary of an IMFs Rapid Financing Instruments (RFI).
The loan was approved by the International Monetary Funds (IMF) Board of Directors.
According to the IMF “The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence and foster the resilience and stability of the global economy. It will particularly help most vulnerable countries struggling with the impact of Covid-19’’.
Nigeria is currently battling a currency degradation with the black-market exchange rate as low as N523 against the dollar following the CBNs ban on the sale of dollar by Bureau de Change. Since then, the currency has seen a favorable increase at N505/$1. Yet analysts fear the reason for the currency crisis is as a result of Nigeria being unable to attract foreign investments.
However, the latest IMF loans may come as a significant boost to the country’s external reserves when it is disbursed anytime from August 23rd this year. The increase in reserve will surely increase the central banks forex liquidity and support capabilities.