See LCCI prediction on naira to dollar exchange rate and why

• The LCCI has predicted that the value of the Nigerian currency will improve against the US dollar
• The chamber's president believes this rate is achievable if the CBN reviews the current free-floating exchange rate
• Currently, the naira is exchanging against the dollar above N1,500 in both the official and unofficial FX markets

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Lagos Chamber of Commerce and Industry (LCCI) has forecasted a potential appreciation of the Nigerian currency, the naira, to N1,000 per dollar exchange rate by the end of 2024.

Gabriel Idahosa, the President of LCCI gave an optimistic prediction when he addressed journalists on the state of the economy in Lagos.

LCCI believes naira will recover Photo credit: Bloomberg/contributor
Source: Getty Images

According to the LCCI president, the projection is based on anticipated increases in oil production and sales of marginal oil fields, alongside a potential rise in global oil prices.

ThisDay reports that he noted that when all comes to place, it will significantly boost foreign exchange supply and help naira's value to improve from the current rate of N1,500.

His words:

“We see the possibility of the naira gaining some value before the end of this year. "The billions of dollars expected from the sales of marginal oil fields, achieving a higher oil production level, and the possibility of an increase in oil price may all play a role in driving supply to record levels and helping the naira to appreciate towards the N1000 mark.”

LCCI appeals to CBN

Despite this positive outlook, Idahosa urged the monetary authorities to reconsider the current free-floating exchange rate policy.

He pointed out that the naira's recent depreciation was largely due to a low supply of foreign currencies and speculative activities that distorted its real value.

He added:

“Before the end of the first quarter, the naira firmed up due to some FX policy reforms undertaken by the CBN. "The CBN needs to sustain its interventions and improve supply in the FX market, adopt policies that would attract more FX inflow into the economy, and build market confidence in the performance of the naira even in the long run.”

CBN predicts new naira to dollar exchange rate

Earlier, Legit.ng reported that the CBN also asked Nigerians to expect the value of the Nigerian currency to improve in the coming months.

The apex bank said increasing domestic crude oil production and exports would improve the naira's value.

The CBN recently conducted another round of forex sales and reiterated its determination to tackle depreciation of the naira.

Source: Legit.ng