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, according to Bank of America.

According to a report by Bloomberg, economist Tatonga Rusike said in a note to clients on Tuesday that, “three indicators, the widely-used black-market rate, the central bank’s real effective exchange rate, and our own currency fair value analysis shows the naira is 20 per cent overvalued.

“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.”

While the naira will come under increasing pressure “due to limited government external borrowing,” devaluation is unlikely to happen until after the February 2023 presidential elections, the bank said.

Africa’s largest economy operates a multiple exchange regime dominated by a tightly controlled official exchange rate and a parallel market where the currency is freely traded.

The naira exchanged at 440.95 to the dollar in the official spot while parallel rate went up to N740, according to the bureau de change operators.

The official rate has depreciated by less than 10 per cent since December 2021 even as the parallel rate is down by nearly a third within the same period, widening the gap to almost 70 per cent, BofA analysis show.

“The greater the disparity with the official market, the higher the likelihood of increasing excess demand for foreign currency on the parallel market,” the bank said.


https://punchng.com/naira-may-devalue-by-20-in-2023-boa

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One definition of insanity is Repeating Same Thing & Expecting a Different Result.
With Athíefku or Thíefnubu, it would be Business As Usual.

#VoteWisely

WibusJaga:
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One definition of insanity is Repeating Same Thing & Expecting a Different Result.
With Athíefku or Thíefnubu, it would be Business As Usual.

#VoteWisely

How is Obi different......

Ayo fayose prediction of the naira reaching 1000 per 1 USD may be a dream come true oo..

valentineuwakwe:
Ayo fayose prediction of the naira reaching 1000 per 1 USD may be a dream come true oo..

Under Buhari and Tinubu wants to continue where Buhari dropped off, G9d forbid batting..........

Nlfpmod, Mynd44........

PDP left it at #180 while APC has taken it to #740 in a space of 7yrs and some stupid mumu will tell me dt APC and PDP is d same??

Buhari came to destroy our economy and polity towards making pur transition to globo homo faster.

FakeIgboJew:
Buhari came to destroy our economy and polity towards making pur transition to globo homo faster.

That is the truth.......

Just when you think you’ve hit rock bottom and sigh with relief that things couldn’t possibly get any worse, an economist comes along to shatter your momentary relief as he points to the deep dark abyss below and tells you to brace yourself…..that there’s more depths to sink down into!

We are witnessing a planned collapse of the world as we know it. Sure it (((appears))) to be triggered by the Corona Plandemic, or the fake war in Ukraine or one of the million and one fake happenings. Look closer and find out that it is not the case.

The death knell was sounded on Aug 15th 1971.

The goal is to devalue all national currencies and economies making their capitulation to a global corporatist one world govt with a single digital currency.

Nigeria is their testbed .

Ask yourself who needs 5G network outside the surveillance state? Digital money with an implanted chip is the future and that 5G network stations coupled with tens of thousands of Starlink satellites is the neural network that will offer both complete surveillance and a platform to make a cashless society run smoothly.

Brace yourself, we are only getting started.

The Fulani bandits terrorizing and kidnapping unchecked are allowed free reign towards getting people to take their chip after Covid Jew jab failed in the Muslim north.

You should understand real wealth will now be measured in your ability to circumvent the Jewish hellhole matrix being planned for you and your children.

Wealth is now how to survive living off grid and on your own abilities to forage and defend yourself.

The era of the real rebel is upon us. You either fold to Judas and be his slave and take his mark or you stand on your feet and fund a hill worth dying on.

Here are some resources to reach you how to survive the planned collapse and how to live. as a free man outside the satanic Judaic matrix:

Weapons training, fabrication, human trap cages. Time to sell that cloak and buy a sword and learn how to use it.

Food foraging, store and bush life survival. Millions will be dead and so much land will be free to survive on. Learn which herbs , mushrooms, roots you can forage in the tropical wild. Learn how to fish , learn how to set traps. You have been living a fake life as defined by modernity . its time to reconnect with the wild .

Medicine, like sourcing for food, the forests is also a pharmacy. Learn about herbs and how to use them as drugs for every ailment.

Get fit. This is not negotiable. You want to survive you must be healthy. Quit any substance abuse habit you are on.

Keep moving. Move for not only your security but also with the seasons. Learn how to make bush shelter using whatever nature offers you.

Get a tool kit bug out bag. Its the only thing you need alongside a flint to make fire.

Get a dog. They are loyal and will have your back and are great partners in hunting.

Avoid every other human. They will send their dogs on you masquerading as dissidents.

Stay spiritually strong and see each day as an adventure and another blessed day of being free.