The Nigerian Naira is expected to trade closer to N400 per one dollar as election campaigns for the 2019 elections enter into full swing.

Already some presidential candidates are gesturing, and financial analysts says that could result in a negative trend in 2018.

Electioneering is expected to push up government spending in 2018 and the risk of the budget deficit being monetised will increase, which would be negative for the naira, according to the Lagos arm of Russian Investment Bank, Renaissance Capital.

The foreign exchange market analysts, however indicated the naira was currently undervalued.



“On 2 August, banks began to publish indicative prices based on trades at the NAFEX window, at the behest of the authorities. This led to the adjustment of the interbank FX rate to $1/N366, from $1/ N315 previously, and its convergence with the only market determined rate (outside the parallel market), the NAFEX rate.

“At today’s interbank rate of c. $1/N360, the naira is cheap; it is 14 per cent undervalued, according to this analyst’s 13-year real effective exchange rate model.

“We think a stronger external sector and tighter monetary policy imply naira appreciation risk in the near term, and as such, we revise our YE17 FX rate forecast to $1/N332 as against $1/N447 previously,” they posited.

They said the Naira would decline in 2018 based on macro economic realities.



“Looser monetary policy in 2018 implies a weaker Naira,” the analysts stated, adding that Godwin Emefiele, the central bank governor, had expressed a desire for policy easing in a mid-2017 monetary policy committee (MPC) statement, but thinks appropriate liquidity conditions should precede it.

They, therefore, forecast an FX rate of $1/N373 at year end 2018 (YE18).

“Our FX model predicts a rate of $1/N373 at YE18; assuming monetary policy becomes accommodative and little upside for the external sector. We think it is probable that instead of appreciating in the near term, the naira weakens gradually to $1/N373 at YE18, which would signal price stability
http://www.herald.ng/naira-to-fall-further-2018/

Make e reach us oh

.

Buhari is working.


If buhari contests and wins the next election, that will be the final straw for me having hope in this country.

I don't support dis motion it would not come to pass...we won't spend too much on d election we re not in Jonathan's regime dis is BUHARI

Baskats

k

All these jungle mushroom newspapers self. Newspapers of doom. It won't happen. We have heard enough of these hardship. That's why fg has to trade with caution in dealing with the Igbos and her alley ( nd militants) because that's the only thing that can really crash naira for now .

K

The only thing we do in Nigeria is election. See them already talking of 2019 election in 2017 barely 2 and a half year after the election that crashed our naira value

We have clean london use iphone 6 @ cheap rate kindly check my signature

How does that affect my farm products?

Atiku we know u are the one buying all the dollars

Hope they wouldn't blame Jonathan?

And where are the APC voodoo economists and zombies who are masturbating that Nigeria is out of recession?

Really??

Good news for some, Bad news for many

APC cabals will definitely pump in all the hoarded dollars

Isiokay

Very bad.

All these shenanigans about dollars and other sabotaging activities would stop after Baba wins 2019. The second tenure of Baba would be more fruitful.

Waoh!!

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Can carry all your basic household equipments.

N20000 only
Lagos

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Isorite

I won't mind honest. It may sound selfish as I earn in dollars but would ordinarily have wanted it to crash but of what significant effect does a crash have on prices of commodities?

The stupiid marketers have till date refused to reduce the prices of commodities that jacked up when the naira was circa 500 to a dollar. My $1000 that was worth 500k has reduced to just 365k but I still buy stuffs at the price I was buying when it was 500k.

Which Kind Nonsense and Negative News be dis

We can't wait

I pray I won't b around to witness that

Bad news sha

Its expected because what CBN have been doing thus far is window dressing to keep the Naira stable.

Meanwhile, leadership should be by example but what we have now is 'do what I say but don't do what I do' by APC led govt.

Example:

WHERE ARE THE CHILDREN OF THE BUHARI THAT PRESENTED HIMSELF TO HIS GULLIBLE SUPPORTERS AS A "POOR" MAN WITH NEVER GROWING 150 COWS?
Let me help you with factual information:
1. Fatima Buhari (daughter) is in Stratford, Uk.
2. Nana-Hadiza (daughter) lives in Buckingham.
3. Safinatu Muhammadu (daughter) is in Arden University, UK.
4. Halima Buhari (daughter that is not so intelligent) just finished law school in Lagos and has gone back to Leicester, UK.
5. Yusuf Buhari (son) is in the university of Surrey, UK.
6. Zahra Buhari (daughter) married but still visiting from her surrey duplex in the UK.
7. Aisha Buhari and Amina Buhari (daughters), both just got admissions into Surrey University and British school of Lome.
While APC could still have something to say against Governor Fayose whose children school in Nigeria.
#APCHypocrisy