By Divine Sam
A recent report by Afrinvest projects that the Nigerian Naira will depreciate to a fair value of N1,804 per dollar by 2025 in the official market. The projection is based on the expectation that the Central Bank of Nigeria (CBN) may face challenges in meeting foreign exchange demand and managing exchange rate volatility. Afrinvest also highlights that the CBN’s ability to support the Naira could be constrained due to limited foreign exchange reserves, which are largely driven by inflows with stringent conditions. This projection contrasts with the N1,500 per dollar benchmark set in Nigeria’s 2025 budget.
As of the latest update, the Naira was trading at N1,534 per dollar in the official market and N1,650 in the black market, with some stability brought by the introduction of the Electronic Foreign Exchange Matching System (EFEMS) in October 2024. However, fluctuations in the exchange rate remain a constant concern.
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