Naira’s Value Expected To Reach 1450/$ by December, Fitch Ratings Suggests

Naira’s Value Expected To Reach 1450/$ by December, Fitch Ratings Suggests....KINDLY READ THE FULL STORY HERE▶

Fitch Ratings anticipates the Nigerian naira to stabilize at 1,450 against the US dollar by year-end, according to Gaimin Nonyane, Director of Sovereigns at Fitch Ratings……… CONTINUE READING

The projection was revealed during a webinar focused on Nigeria and Egypt.

Nonyane attributed the positive outlook to reforms in the foreign exchange market, oil industry, and monetary policy.

Despite the naira’s ongoing volatility, expected multilateral donor funding and improved oil receipts could mitigate fluctuations by the third quarter.

The forecast predicts an average exchange rate of 1,200/dollar for the year, gradually depreciating thereafter depending on foreign exchange reform momentum.

Nonyane outlined key factors for potential further upgrades, including sustained reduction in inflation, stability in foreign exchange markets, and stronger mobilization of domestic non-oil revenue.

Additionally, Fitch Ratings foresees recovery in the oil sector, with expectations of increased refining capacity from projects like the Dangote plant.

However, gross foreign exchange reserves have declined, currently standing at around $32.7 billion.

Despite this, modest growth is projected by year-end due to recovery in oil receipts and anticipated multilateral funding.

The Minister of Finance, Wale Edun, highlighted expected World Bank funding of $2.25 billion, emphasizing its significance in stabilizing the Nigerian economy and fostering growth.