5 Days To Go: Tinubu’s Govt Misses Exchange Rate Target for 2023 As Naira Falls to US Dollar
- The administration of President Bola Tinubu is set to miss one of his promises for 2023 naira exchange rate
- Nigerian currency continues to struggle at both the official and unofficial foreign exchange rate market
- There was hope that by December, the Cardoso-led Central Bank of Nigeria would have found a solution for Naira
Legit.ng journalist Dave Ibemere has over a decade of experience covering tech, energy, stocks, investments, and the economy.
The federal government's plan to achieve an exchange rate of N750 against the dollar for the Naira by the end of 2023 appears unrealistic, with only five days remaining before the new year.
Legit.ng had reported that Taiwo Oyedele, chair of the presidential committee on fiscal policy and tax reforms, told the press that the various policies would help Naira close the year at N750 a dollar.
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He described the exchange rate target as the fair value of Naira against the US dollar.
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His words:
"We think all of that will happen before December, and maybe in a matter of a couple of weeks, we will begin to see the results, such that before the end of the calendar year, the naira should find its true value, not the one that is being done currently in the parallel market"
"The government sees a “fair price” for the dollar at N650 to N750"
Naira to dollar exchange rate
Since the interview in October 2023, the Naira has touched new records at the official and unofficial markets.
At the official market, Reuters reported that on Tuesday, December 19, 2023, the naira exchange hit a record low of N1,248/$.
Similarly, the Naira has been exchanged for as high as N1,300 at the unofficial markets against the US dollar.
New Naira to dollar exchange rate
The free fall of the Naira has continued even during the holiday period.
According to checks conducted by Legit.ng on Christmas Day and Boxing Day (December 25 and December 26), the value of the Naira in the parallel market was N1,233 and N1,205 per $1, respectively.
The official market was closed on those two days.
However, the previous Friday, December 22, 2023, the Naira closed at N885.88 per $1 at the official FMDQ market.
From the trend, it looks certain the exchange rate of N750/$ put forward by Tinubu's government is not likely to happen.
Economist sets new exchange rate in 2024
Earlier, Legit.ng reported that the Economist Intelligence Unit (EIU), a research and analysis firm, predicted that the Naira would close in 2023 with an exchange rate of N848/$ in the official market.
The EIU said that by the end of 2024, they expect the Naira to be worth N861.5 compared to one US dollar.
They also predicted that in 2024, the pressure on the Naira might reduce if the CBN does not introduce strict measures.
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Source: Legit.ng
