Nigerians have been advised to brace themselves for continued downward pressure on the country's FX rates as the naira continues its downward spiral.
In a report released on Thursday, Africa FX Monitor shared its anticipation of the volatility of the naira persisting in the days ahead, with black market rates projected to trade as high as N985 per US dollar in the short term.
The development comes following previous reports on Wednesday revealing that the dollar already trades at N984 on the P2P platforms.
The Nigerian currency has witnessed its value depreciate over the years and in spite of the federal government's recent efforts to unify the country’s multiple exchange rate system and restore balance to the forex market, Stears’ Africa FX Monitor indicates that market participants are pricing in forex market fundamentals and distortions.
The above is inevitably leading to ongoing challenges in achieving forex stability.
Speaking on the report, the Head of Insights at Stears, Fadekemi Abiru, expressed concerns about the naira's volatility while noting that the knowledge could aid Nigerian businesses in making informed decisions.
“Stears’ Africa FX Monitor serves as a vital tool for understanding and responding to the Naira’s fluctuations. The continued unpredictability of the Naira underscores the importance of timely and informed decision-making for businesses and investors in Nigeria,” she stated.
Also sharing his thoughts, Senior Economist at Stears, Dumebi Oluwole said: “The dynamics of the Naira are closely intertwined with global economic trends, geopolitical events, and local policy decisions.
“Stears’ Africa FX Monitor goes beyond the numbers, providing businesses and investors with a nuanced understanding of how these factors impact the Naira’s value. In today’s volatile market, knowledge is a powerful tool for making strategic financial decisions.”