CBN Predicts New Naira to Dollar Exchange Rate, Gives Reasons
- The CBN has asked Nigerians to expect the value of the Nigerian currency to improve in the coming months
- The apex bank said increasing domestic crude oil production and exports will enhance the naira's value
- The CBN is determined to find a solution to the depreciation of the naira and recently conducted another round of forex sales.
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) expects the naira to appreciate in the foreign exchange markets driven by better crude oil production and exports.
The apex bank stated this in its latest report titled "Macroeconomic Outlook: Price Discovery for Economic Stabilisation".
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According to CBN, the rise in crude export will help bring more forex into the market, reduce depreciation pressures, and strengthen the naira.
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The CBN said:
“The expected rise in crude oil export receipts would provide further impetus to the market, moderate depreciation pressures and strengthen the naira."
Punch reports that the CBN also said it expects improved investor confidence and higher remittances due to the reforms in the foreign exchange market.
The value of the naira at the official market was N1,566.82 on Thursday, June 18, while in the black market, the dollar was sold at N1,610.
The CBN believes that the latest move will help stabilise the exchange rate when all these kick in.
Outlook for the Nigerian economy
In the new report, CBN also stressed that the Nigerian economy indicates broad resilience, with continued growth, expected moderation of inflation, and greater exchange rate stability.
It noted:
“The outlook is influenced by better domestic crude oil production and refining, and higher oil prices, which could raise growth from 2.74% in 2023 to 3.38% in 2024.”
CBN hopes to crash dollar
Earlier, Legit.ng reported that the CBN carried out another round of forex sales to licensed Bureau De Change Operators in the country.
Each BDC received $20,000 as the CBN bid to reduce the exchange rate at which the dollar is sold on the street.
The Central Bank of Nigeria also instructed that the BDCs resell to Nigerians not more than a certain rate.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
