Naira volatility, unofficial FX market rates projected to hit N985/$

By Motolani Oseni

Stears’ Africa FX Monitor has revealed that Nigerians should brace for continued downward pressure on Nigeria’s FX rates, this is even as it projected that the volatility of the Naira will persist in the coming days, with black market rates projected to trade as high as N985 per US Dollar in the short term.

Over the past seven years, Nigeria’s currency has shed over 30 per cent of its value. Despite the recent call to unify Nigeria’s multiple exchange rate system and restore balance to the forex market, Stears’ Africa FX Monitor indicates that market participants are pricing in forex market fundamentals and distortions, leading to ongoing challenges in achieving forex stability.

Stears’ Africa FX Monitor highlights fiscal policies, external trade, and global market trends, including inflation rates, interest rates, policy events, and geopolitical factors as key influencers affecting the Naira’s performance. The intelligence tool, a comprehensive exchange rate data repository, provides daily FX updates on Africa’s top economies, such as Nigeria, Kenya, and South Africa. It also includes insights on daily FX drivers.

Fadekemi Abiru, Head of Insights at Stears, expressed her concerns about the ongoing Naira volatility, stating, “Stears’ Africa FX Monitor serves as a vital tool for understanding and responding to the Naira’s fluctuations. The continued unpredictability of the Naira underscores the importance of timely and informed decision-making for businesses and investors in Nigeria.”

“The dynamics of the Naira are closely intertwined with global economic trends, geopolitical events, and local policy decisions,” stated Dumebi Oluwole, a Senior Economist at Stears. “Stears’ Africa FX Monitor goes beyond the numbers, providing businesses and investors with a nuanced understanding of how these factors impact the Naira’s value. In today’s volatile market, knowledge is a powerful tool for making strategic financial decisions,” she added.

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