Financial markets
- Nigeria’s naira shows signs of dramatic comeback against the US dollar.
- Experts predict a potential exchange rate of ₦700 naira to a dollar.
- Recent government reforms and improved investor confidence contribute to the currency’s resurgence.
In a surprising turn of events, Nigeria’s national currency, the naira, may make a dramatic comeback against the US dollar, with financial experts predicting a remarkable turnaround to reach ₦700 to $1.
According to experts, the recent government reforms and improved investor confidence are the driving forces behind this promising development.
Wale Edun, a prominent financial advisor to President Bola Tinubu, shared his optimism during a high-level discussion with lawmakers in the capital city, Abuja. He confidently asserted that the fundamental value of the naira should be around 700 against the dollar.
Edun’s insights come as a glimmer of hope for Nigerians, as he warned speculators against betting on the naira’s decline, indicating a real chance of losses for those who underestimate the currency’s resilience.
The government’s proactive measures to reorganize the exchange-rate system, coupled with the elimination of costly gasoline subsidies, have significantly bolstered investor confidence in the Nigerian economy.
As Africa’s largest crude oil producer, Nigeria’s recent decision to ease foreign-exchange controls has streamlined its currency regime, bridging the gap between the unofficial and parallel market rates.
Financial markets are closely watching the naira’s progress as it inches closer to the coveted 700 to the dollar mark. If the predictions come to fruition, the naira’s dramatic comeback could reshape Nigeria’s economic landscape and boost the country’s position on the global financial stage.
Article by Victor Oluwole
Head and Editor at Business Insider Africa