Nigeria needs reforms to hedge against future FX crisis – World Bank Africa economist

by Reuters 0

Chijioke Ohuocha | ABUJA

Nigeria needs to reform its finance to ensure it can hedge against any future currency crisis, the World Bank chief economist for Africa said on Wednesday.

Albert Zeufack said currency adjustments could lead to higher inflation but continued monetary policy tightening would price pressures, adding that making fiscal adjustments in the West African country now in its second year of recession would be “extremely challenging”.

Africa’s biggest economy is facing a currency crisis brought on by low oil prices, which has hammered its foreign reserves and created chronic dollar shortages, frustrating businesses and individuals.

(Reporting by Chijioke Ohuocha; editing by John Stonestreet)