In its recent report, Afrinvest, an investment management holding company, projected that the Nigerian naira will depreciate to N1,804 per dollar in the official market in 2025.
The report is titled ‘Beyond the Rhetorics: Transforming Reforms to Tangibles’. According to it, it predicts that the Central Bank of Nigeria (CBN) will become tired of providing assistance to the FX market.
Thereby, increasing the demand for foreign exchange and anticipating FX volatility. The report says:
“We anticipate that exchange rate volatility would persist in 2025, albeit at a modest pace.
“Our prognosis is hinged on the belief that the CBN would be constrained from adequately meeting market demand on a sustained basis, as the recent FX reserves accretion was largely driven by inflows from inorganic sources, including those with stringent conditions on usability.”
Recall that during the president’s budget presentation to the assembly, he pegged the naira-to-dollar benchmark for 2025 at $1 to N1500.
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