The Nigerian Economic Summit Group has predicted that the Nigerian naira will slip further to N500 against the US dollar on the Investors & Exporters FX window.
According to the NESG’s 2023 macroeconomic outlook report, the country’s external reserves are estimated to fall by 0.62% from $37.21 billion as of January 17, 2023, to $34.9 billion at the end of the year.
The Central Bank’s intervention in the forex market is said to drive the decline of the official foreign exchange reserve.
it was also said that a shortage in the inflow of Foreign Exchange can lead to this fall at the end of 2023.
However, NESG also predicted that the fall in forex supply will further facilitate the depreciation of the exchange rate.
NESG’s 2023 macroeconomic outlook report stated that the decline in forex supply will further support exchange rate depreciation. In addition, this shortage of FX will enhance the operation of the black market and the rate at which the exchange depreciates will be fast.
As of Thursday, Naira fell to N747 against the dollar and this is which is a continued depreciation.
According to reports, the CBN’s decisions to redesign the N200, N500, and N1,000 notes, amongst other factors, were said to have further triggered the depreciation of the naira in the FX market.