The Nigerian naira is projected to depreciate to a weighted fair value of N1,804.45 in the coming year as tendency of volatility persists.
This is according to a new report by Lagos-based investment and research firm Afrinvest titled ‘Beyond The Rhetorics: Transforming Reforms to Tangibles.
The research company revealed that while the gross foreign reserves have risen above $40 billion, “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 were largely driven by inflows from inorganic sources, including those with stringent conditions on usability,” it said.
This prediction comes against the backdrop of the nation’s 2025 budget which assumes that the exchange rate would steady at N1,400 against the dollar.
The naira closed on a positive note this week though strengthening from N1,548.40/$1 as at the eve of Christmas to N1,534/$1 on Friday, 27th December, according to data compiled from the FMDQ Securities.
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