A raft of policy measures to unify exchange rates in Nigeria have been welcomed by the investor community – but without a cash injection from the central bank, the naira could continue to freefall.
International investors will continue to wait in the wings for a capital injection from the Central Bank of Nigeria (CBN) to fund foreign exchange demand of around $1.5 billion.
Until then, the naira could devalue to as low as N1,000 to the US dollar, says Charity Orji, chief executive officer of Angala Fintech Ltd., a Lagos-based payments and credit solutions provider. As of 30 June, the naira traded at 770.88 to the dollar, according to data from the CBN.
“The N,1000 level is a longer-term projection, however, that also takes into account little to no inflow of fresh capital investments,” says Orji.
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