RateCaptain
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us
No Result
View All Result
Subscribe
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us
No Result
View All Result
RateCaptain
No Result
View All Result
Home Currencies

Naira would likely weaken to 520 per dollar – Bank of America

Rate Captain by Rate Captain
October 19, 2022
in Currencies
Reading Time: 1 min read
A A
0
Naira would likely weaken to 520 per dollar – Bank of America
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

The Bank of America has stated that the official exchange rate of the naira will weaken to 520 per dollar in 2023 as it currently trades for 20 percent above its fair value.

This is according to a report by Bloomberg citing the analysis of the naira by the Bank of America.

AlsoRead

South African Rand Plunges to New Low as Interest Rates Rise

Turkish Lira Plunges to Unprecedented Depths as Erdogan’s Power Grasp Shakes Economy to Its Core.

Is the eNaira a waste of government resources?

The bank asserted that based on three indicators–the widely-used black-market rate, the central bank’s real effective exchange rate, and the bank’s currency fair value analysis, Nigeria’s local currency unit is set to weaken further next year as its current exchange rate to the dollar is well above fair value.

Citing the comment of an economist, Tatonga Rusike, in a note to clients Bloomberg wrote “we see scope for it to weaken by an equivalent amount over the next six-nine months, taking it to as high as 520 per USD.”
According to the bank, the naira will come under increasing pressure due to limited government external borrowing. However, it stated that a devaluation of the local currency is unfeasible until after the February 2023 presidential elections.

Meanwhile, at the official exchange rate, the naira has depreciated by about 10% year-to-date and by 31 percent at the parallel rate. The bank stated that “the greater the disparity with the official market, the higher the likelihood of increasing excess demand for foreign currency on the parallel market.”

There exists a significantly large disparity between Nigeria’s official exchange rate and the parallel market where the currency it is freely traded. As of this writing, data from FMDQ exchange shows that the naira’s official exchange rate stands at N441.25/$1. Also, information Rate Captain gathered from forex traders shows that the parallel market rate is around 740/$1. This represents a 67 percent disparity between the controlled official exchange rate and the black market rate as of this writing.

Previous Post

Currency Depreciation Pressures: How Countries Should Respond to the Strong Dollar – IMF

Next Post

CPPE says CBN financing of the fiscal deficit caused the high inflation.

Related News

South African Rand Plunges to New Low as Interest Rates Rise

South African Rand Plunges to New Low as Interest Rates Rise

by Rate Captain
May 29, 2023
0

The South African economy has been facing a turbulent period, marked by worsening electricity shortages, rising inflation, and recent allegations...

Turkish Lira Plunges to Unprecedented Depths as Erdogan’s Power Grasp Shakes Economy to Its Core.

Turkish Lira Plunges to Unprecedented Depths as Erdogan’s Power Grasp Shakes Economy to Its Core.

by Rate Captain
May 29, 2023
0

The Turkish lira has reached an all-time low as President Recep Tayyip Erdogan secures his victory in the 2023 presidential...

Is the eNaira a waste of government resources?

Is the eNaira a waste of government resources?

by Rate Captain
May 24, 2023
0

The International Monetary Fund (IMF) recently released a report titled "Nigeria's eNaira, One Year After," revealing that 98.5% of eNaira...

Naira appreciated to N738/$ in the Parallel Market

The Rise in Currency Hoarding: Examining Nigeria’s Cash Crunch.

by Rate Captain
May 23, 2023
0

Nigeria has experienced a significant spike in currency outside the banking system for the fourth consecutive month, reaching a staggering...

Next Post
Central Bank not under compulsion to provide dollars for flight ticket proceeds, says Governor

CPPE says CBN financing of the fiscal deficit caused the high inflation.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Buhari and state governments get N651 million hardship allowance.

Former President Buhari Submits Assets Declaration Forms, Shows Zero Debt.

June 4, 2023
Rising Prices of Food and Essential Goods Follow Fuel Subsidy Removal Announcement by President Tinubu

Rising Prices of Food and Essential Goods Follow Fuel Subsidy Removal Announcement by President Tinubu

June 4, 2023

Popular Story

  • Providus Bank Plc Announces Graduate Management Trainee Program 2023/2024.

    Providus Bank Plc Announces Graduate Management Trainee Program 2023/2024.

    0 shares
    Share 0 Tweet 0
  • Former President Buhari Submits Assets Declaration Forms, Shows Zero Debt.

    0 shares
    Share 0 Tweet 0
  • Nigerian Banks to Demand Tax Clearance Certificate Before Customers Can Buy Dollars, Other Foreign Currencies

    0 shares
    Share 0 Tweet 0
  • Embracing Remote and Hybrid Work to Beat Transportation Costs in Nigeria.

    0 shares
    Share 0 Tweet 0
  • Telcos issue banks disconnection notice over USSD debt

    0 shares
    Share 0 Tweet 0
RateCaptain

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

?>