• 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 a year.
• The Nigerian currency has seen a mixed performance across all segments of the forex market over the past week

Legit.ng’s Pascal Opada reported on technology, energy, stocks, investments and economy for over a decade.

Bismarck Rewane, economist and managing director of the Financial Derivatives Company (FDC), predicted that naira would strengthen further in January 2025 from the current rate.

Rewane revealed this during his monthly Lagos Presentation of the breakfast session for business executives.

Mixed fortunes for the naira as reserves rise

Nigerian currency has experienced mixed performance on all segments of the forex market in the last week.

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The Central Bank of Nigeria (CBN) stated that Foreign exchange reserves hit 33-month highs, advancing 68 points weekly to reach $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 on 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 a 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% depreciation in value due to speculative returns.

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

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Naira crashes again in official window, appreciates in black market

The naira will stabilize at N2,000 per dollar

He asked the apex bank to structure the foreign exchange market more transparently.

Punch reports that Rewane added that the exchange rate is the main cause of inflation in Nigeriasaying that a partial recovery of the naira will not help reduce inflation but will reduce the saturation of money supply in the market.

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

CBN reduces customs quota to clear goods at ports

Legit.ng previously reported that the Central Bank of Nigeria (CBN) reduced customs exchange tariffs for importers clearing goods at ports.

According to data from the Nigerian Trade Portal, importers seeking to release goods would pay N1,655.38 to a dollar from Monday, November 11, 2024.

The latest rate represented an increase of 1.51% from the exchange rate of N1,680.90/$ quoted on Tuesday, August 20, 2024.

Proofread by James, Ojo Adakole, journalist and editor at Legit.ng.

Source: Legit.ng