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- The African Development Bank (AfDB) has predicted that the naira and respective different African currencies volition depreciate successful 2025 and 2026
- AfDB projected that the naira volition suffer six per cent of its worth during the projected period, citing planetary economical shocks
- The AfDB reports came arsenic the naira depreciated against the US dollar successful the authoritative marketplace connected Wednesday, May 28, 2025
Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.
The 2nd fractional of the twelvemonth volition beryllium challenging for the Nigerian currency, the Ghanaian cedi and 19 different African currencies.
This is according to a projection by the African Development Bank (AfDB), which predicted that the naira volition autumn by astatine slightest six per cent betwixt 2025 and 2026.
Source: Getty Images
CBN raises hopes arsenic AfDB predicts naira’s crash
The bank’s prediction comes aft Olayemi Cardoso, the politician of the Central Bank of Nigeria (CBN), disclosed that the naira is present globally competitory and that the volatility successful the overseas speech marketplace has reduced significantly.
Cardoso said the volatility declined by astir 0.5%, citing improved monetary and fiscal reforms.
However, contempt Cardoso’s optimism, the AfDB’s reports projected currency depreciation for 21 African countries successful 2025, including Nigeria, Egypt, Ethiopia, Ghana, Libya, Rwanda, Zambia, and Zimbabwe, wherever currency depreciations are expected to hap astatine six per cent.
AfDB names robust African currencies
The slope attributed the depreciation inclination successful these countries to imaginable declines successful export earnings, which whitethorn interaction nationalist currencies.
Meanwhile, the AfDB study expects that currencies successful Kenya, Morocco, and CFA franc-using countries volition acquisition a robust currency rebound by much than 3 per cent against the US dollar, supported by stronger marketplace dynamics.
In 2023, AfDB said that 28 African countries experienced currency depreciation, but 17 of them reversed the losses oregon recorded a slower complaint of decline.
AfDB recommends solutions
Nigeria is portion of the class that has yet to acquisition currency depreciation recovery.
The study shows the relation of planetary factors successful shaping currency trends portion pointing to home challenges specified arsenic unguarded FX frameworks, fiscal shortage monetisation, governmental instability, and debased productivity.
AfDB asks that African countries boost home macroeconomic fundamentals, amended export capableness via value-added production, and instrumentality strategical policies to trim currency volatility.
The naira depreciates
Meanwhile, the naira experienced different circular of depreciation successful the Nigerian Foreign Exchange Market (NFEM) connected Wednesday, May 28, 2025.
The section currency, which experienced an all-week rally past week, fell against the dollar, trading astatine N1,592 per dollar.
The naira has continued to depreciate astatine NFEM since this week contempt interventions by the Central Bank of Nigeria (CBN), which sold $50 cardinal to authorised trader banks, Legit.ng reported.
The $50 cardinal injection by the apex slope came aft CBN sold $190 cardinal to dealers the erstwhile week.
Source: Getty Images
At the extremity of trading connected Wednesday, May 28, 2025, currency dealers quoted the naira astatine a precocious of N1,595 and a debased of N1,589.
10 Strongest Currencies successful Africa successful May 2025
Legit.ng earlier reported according to a caller ranking, successful April 2025, the Tunisian Dinar strengthened, emerging arsenic Africa’s strongest currency astatine 2.95 per dollar.
The Tunisian currency’s summation was attributed to choky overseas speech regulations, monetary argumentation tightening, and a unchangeable economical environment.
In the reappraisal period, the cedi’s resurgence helped to trim import costs.
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Source: Legit.ng
