Current Exchange Rates As of today, the official exchange rate of the Nigerian Naira (NGN) against the US Dollar (USD) is approximately NGN 1,530 per USD. On the black market, the rate is significantly higher, hovering around NGN 1,580 per USD. These rates reflect the ongoing volatility and disparities between official and unofficial currency markets in Nigeria.
Factors Influencing the Naira Exchange Rate Several key factors are influencing the Naira’s exchange rate. Firstly, Nigeria’s economic policies, including recent shifts under President Bola Tinubu’s administration towards inflation targeting and a more flexible exchange rate regime, are crucial. While these policies aim to stabilize the currency, initial implementation phases have faced criticism for lack of depth, leaving the Naira vulnerable to depreciation and inflation (CoinCodex) (Nairametrics).
Secondly, global oil prices play a significant role. As an oil-dependent economy, fluctuations in oil prices directly impact Nigeria’s foreign exchange earnings and reserves. Despite high global oil prices, domestic production challenges and longstanding US dollar demand backlogs continue to exert downward pressure on the Naira (The future of trading).
What to Expect for the Naira Exchange Rate In the coming week, experts predict a mixed outlook for the Naira. Short-term forecasts suggest slight fluctuations with the exchange rate expected to range between NGN 1,515 and NGN 1,620 per USD (CoinCodex). However, a more stable and possibly stronger Naira could be seen if recent policy adjustments by the Central Bank of Nigeria (CBN) are firmly implemented and foreign inflows increase (Nairametrics).
Expert Analysis Analysts from Goldman Sachs have noted that the Naira looks undervalued on a Real Effective Exchange Rate (REER) basis and predict an appreciation to NGN 1,200 per USD within the next 12 months. This optimistic outlook hinges on continued policy reforms and successful management of Nigeria’s external liquidity and currency crises (Nairametrics).
Conversely, other experts, including those at Capital.com, maintain a bearish stance, expecting sustained downward pressure on the Naira due to factors like dwindling foreign exchange reserves, high inflation, and persistent US dollar demand (The future of trading).
Prediction: The Naira is expected to experience minor fluctuations in the short term with potential for appreciation in the long term if economic policies are effectively enforced and external economic conditions improve. As always, these predictions are subject to change based on new economic developments and global market dynamics. Investors and stakeholders are advised to stay updated on policy changes and market trends.
9News Nigeria (Business )
THE ROTTEN FISH: CAN OF WORMS OPENED OF APC & TINUBU'S GOVERNMENT OVER NIGERIA'S ECONOMIC DOWNTURN
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