Latest expert exchange rate prediction on naira against US dollar in forex markets

• Bismark Rewane has projected a favourable speech complaint show for the naira against the US dollar
• The renowned Nigerian economist besides forecasted a flimsy driblet successful ostentation to 23.15% and a 50 ground constituent chopped successful the Monetary Policy Rate
• The Nigerian currency has enjoyed a beardown show successful caller days, some astatine the authoritative and unofficial forex markets

Legit.ng writer Dave Ibemere has implicit a decennary of acquisition successful concern journalism, with in-depth cognition of the Nigerian economy, stocks, and wide marketplace trends.

Bismarck Rewane, the Chief Executive Officer (CEO) of Financial Derivatives Company, has projected that the Nigerian currency, the naira, volition commercialized betwixt N1,600 and N1,650 successful the authoritative overseas speech marketplace successful June, July.

He cited information that bespeak effectual measures by the Central Bank to negociate money proviso growth, which peaked astatine 78% successful May past year.

Bismark Rewane projects a unchangeable naira outlook successful caller analysis Photo credit: Bloomberg/contributor
Source: Getty Images

He gave this projection portion speaking astatine the caller Lagos Business School meal nine meeting.

He said:

"The authoritative and parallel marketplace speech rates person converged, with the dispersed present wrong a N50 margin, indicating that the Naira is present reasonably priced."We expect that the weakening of the US dollar down 8.7% year-to-date could enactment the section currency, which is expected to stay unchangeable passim 2025."

Expert predicts caller speech rate

Rewane besides expects a chopped of a hefty 50 basal points successful the argumentation complaint by the Monetary Policy Committee(MPC), erstwhile it holds its adjacent meeting.

The fiscal adept besides noted that the Federation Account Allocation Committee (FAAC) is apt to support a robust N1.6 trillion, buoyed by reduced firm income taxation liabilities.

Additionally, Rewane anticipates further reductions successful the prices of Premium Motor Spirit (PMS) to N845 per litre and diesel to N950 per litre.

He maintained that contempt a surge in nett overseas reserves and important moderation successful wealth proviso growth, the naira remains undervalued by astir 26.82%.

Compared to the NAFEM complaint of N1,599.33 to the dollar, this suggests an undervaluation of 27.08%.

Highlighting broader economical trends, Rewane pointed retired that the Purchasing Power Parity (PPP) complaint for the naira should ideally basal astatine N1,158.50, peculiarly arsenic the US dollar has weakened by 8.7% against planetary currencies year-to-date.

Rewane speaks connected naira different economical opportunities Photo credit: Nurphoto
Source: Getty Images

Opportunities to look retired for

In his presumption to the CEOs attending the meeting, Rewane pointed them to cardinal sectors wherever they can find worth successful the adjacent term.

The sectors see power, which presently has implicit 50% unmet demand, and agriculture, wherever determination is simply a rising request for storage, mechanisation, and processing capableness successful a state facing terrible nutrient insecurity.

Rewane besides spoke astir the opportunities successful the healthcare and pharmaceutical sectors with rising demand, anemic nationalist infrastructure and increasing backstage assemblage request that is unmet.

However, helium cautioned that vigor assemblage investments successful Nigeria stay constrained by argumentation uncertainties, forex risks, and tariff discrepancies, deterring imaginable investors.

Naira starts June strong.

Earlier, Legit.ng reported that the worth of the Nigerian currency appreciated against the dollar successful the authoritative overseas speech market.

There was besides an betterment successful the naira’s show successful the parallel market, besides known arsenic the achromatic market.

The stronger show of the naira, which is present N1,551/$, has enabled the Central Bank of Nigeria (CBN) to trim the speech complaint utilized by the Nigeria Customs Service for import duties.

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Source: Legit.ng