Economic analysts predict the Naira’s depreciation to N1,804/$1 by 2025. Discover the key factors driving this alarming trend.
The Nigerian Naira is expected to depreciate to a fair value of N1,804 per dollar in the official market by 2025, as indicated in a recent Afrinvest report titled ‘Beyond The Rhetorics: Transforming Reforms to Tangibles.’
This forecast stems from concerns that the Central Bank of Nigeria may struggle to meet foreign exchange demands amid anticipated volatility in the FX market.
The report suggests that while exchange rate fluctuations are likely to continue in 2025, they may occur at a more moderate pace.
It emphasizes that the Central Bank’s ability to sustain market demand is limited, particularly as recent increases in FX reserves have primarily come from inorganic sources with strict usability conditions.
This projection contrasts with the N1,500 per dollar target outlined in the 2025 budget presented to the National Assembly.
Additionally, recent reports indicate that the Naira appreciated in the official market, closing at N1,534 per dollar, while the black market rate stood at N1,650.
Despite ongoing fluctuations throughout 2024, the implementation of the Electronic Foreign Exchange Matching System in October has contributed to a degree of stability.
Peoplesmind
