A recent report by Afrinvest has projected that Nigerian Naira to depreciate to N1,804 per dollar fair value at the official market in 2025.
According to Afrinvest report, titled ‘Beyond The Rhetorics: Transforming Reforms to Tangibles,’ said the projection is based on the belief that the Central Bank of Nigeria may be constrained in the coming months in meeting up with foreign exchange demands and anticipated FX volatility.
“We anticipate that exchange rate volatility would persist in 2025, albeit at a modest pace.
“Our prognosis is hinged on the belief that the CBN would be constrained from adequately meeting market demand on a sustained basis, as the recent FX reserves accretion was largely driven by inflows from inorganic sources, including those with stringent conditions on usability,”, the report said.
This comes against the N1,500 per dollar benchmark proposed in the 2025 budget before the National Assembly.
Recall that on Friday, 27 December, 2024 reports that the Naira gained at the official market to close at N1,534 per dollar and N1,650 at the black market.
Although Naira fluctuations had remained a constant phenomenon in 2024, the introduction of the Electronic Foreign Exchange Matching System, EFEMS, in October had brought relative stability.
