Financial experts predicts how naira will exchange in January

1 week ago 1

Renowned economist Bismarck Rewane has predicted that the naira will recover against the US dollar in January 2025
Rewane disclosed that there is no economic basis for the naira to trade at less than 30% of its fair value in less than one year
The Nigerian currency has experienced mixed performance across all foreign exchange market segments in the past week.

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Bismarck Rewane, an economist and the managing director of the financial derivatives company (FDC), predicted that the naira would strengthen further in January of next year relative to its current rate.

Rewane disclosed this during his monthly Lagos Business Executive Breakfast Session presentation.

Bismarck Rewane makes a strong case for the naira

Mixed fortunes for the naira as reserves rise

The Nigerian currency has experienced mixed performance across all foreign exchange market segments in the past week.

The Central Bank of Nigeria (CBN) said the FX reserves hit record levels in 33 months, advancing 68 points weekly to settle at $40 billion.

Data from the FMDQ Exchange shows that the naira depreciated by 70 basis points against the dollar to settle at N1,678.87 per dollar.

However, the naira strengthened at the parallel market by 30 basis points against the dollar to close at N1,720 per dollar.

Rewane asks CBN to auction more dollars

Rewane disclosed that there is no economic basis for the naira to trade at less than 30% of its fair value in less than one year.

He expressed strong optimism that the naira would recover some of its losses in January.

According to him, the difference between the black market and the official window has disappeared.

He said the development was responsible for the 30% value depreciation due to speculative round-tripping.

The FDC boss said the CBN should announce a dollar sales programme similar to the T-Bill auction to help reduce market uncertainty.

The naira to stabilise at N2,000 per dollar

He asked the apex bank to structure the FX market more transparently.

Punch reports that Rewane added that the forex rate is the leading cause of inflation in Nigeria, saying that a partial recovery of the naira will not help to reduce inflation but will curtail money supply saturation in the market.

The economist said the local currency will trade below N2,000 per dollar.