Naira: Investment Firm Sets N1804/s Exchange Rate for 2025
The naira outlook appears pessimistic, at least, to investment experts at Afrinvest, who set the weighted average exchange for the local currency at N1,804 per US dollar in 2025.
In its exchange rate projection for next year, Afrinvest deployed fundamental, technical, and relative approaches in arrival at the weighted average rate of N1804.45 per greenback.
Despite the fact that the Central Bank of Nigeria’s (CBN) foreign reserves climbing above $40 billion level in the fourth quarter of 2024, analysts at Afrinvest anticipate that exchange rate volatility would persist next year –albeit it at a modest pace.
Latest data from the Apex Bank showed that the gross balance in external reserves jumped to $40.848 billion at the last look on Friday.
“Our prognosis is hinged on the believe that the CBN would be constrained from adequately meeting market demand on a sustained basis, as recent FX reserves accretion were largely driven by inflows from inorganic sources, including those with stringent conditions on usability,” Afrinvest Limited said.
Analysts however said notwithstanding, they do not rule out the possibility of a significant rebound in the naira rate, especially if accretion from organic sources—crude oil, and non-crude oil exports; foreign capital flows and diaspora remittances—takes a significant leap.
MarketForces Africa reported that the naira settled at N1,537 in the official FX market on Tuesday, appreciated by N1 after the Central Bank sold $40 million to boost FX level in the official window.
Parallel market rate settled at N1,640 per greenback following temporary FX sales from banks to alleviate seasonal demand pressure. #Naira: Investment Firm Sets N1804/s Exchange Rate for 2025 FBN Holdings Records Huge Off-Market Shares Transactions
