The board of the International Monetary Fund (IMF) has approved Nigeria’s request for $3.4 billion in emergency financial assistance to support the government’s efforts in mitigating the severe economic impact of the coronavirus.
According to the publication, the loan falls under the IMF’s Rapid Financing Instrument (RFI), which extends to member countries without conditions attached to a formal IMF programme.
The funds will disbursed immediately in a matter of days. They will boost the foreign currency reserves of the Central Bank of Nigeria (CBN) and give monetary authorities the required firepower as it moves towards convergence and stability of the exchange rate in a time of supply and demand shocks, analysts said.
The Washington-based institution disclosed this in a statement by its deputy managing director and acting chairperson, Mitsuhiro Furusawa.